We look after the tax side of deceased estates for law firms across Australia. Final returns, trust returns, capital gains tax and ATO correspondence. You keep the client relationship. We keep the numbers clean.
No. Australia does not have an estate tax or an inheritance tax. But a deceased estate still has real tax obligations. The executor may need to lodge a final "date of death" tax return, trust tax returns for the estate, and deal with capital gains tax when assets are sold or passed on. If this is missed, the executor can be held personally responsible.
You manage the will, probate, the family and the timeline. The tax side often lands in a grey area. The family's old accountant has retired. The executor has no idea what a trust return is. And distribution is waiting on answers nobody has.
We work with:
Most estate delays are not legal problems. They are tax and paperwork problems.
Prior year returns were never lodged, or no one can find the cost base for the shares.
The final individual return and the estate's trust return are different things. They are often confused.
A property sold outside the two year window, or an asset passing to a beneficiary who lives overseas.
The estate is ready to pay out, but the tax position is not confirmed.
Your team chasing an accountant for weeks while the family waits.
We are set up to fix each one of these, and to tell you clearly what we need and when.
The deceased person's final individual return, from 1 July to the date of death.
Catching up any years that were not lodged before death.
Returns for the estate while it is being administered, including applying for the concessional tax rates available in the first three income years.
On property, shares and other assets. Including the main residence exemption, pre-CGT assets and assets passing to overseas beneficiaries.
Setting up the estate correctly with the ATO.
Clear information for each beneficiary about what they need to include in their own tax return.
Ongoing tax returns and advice once a testamentary trust is running.
Working through how death benefits paid to the estate are taxed.
Dealing with the ATO on the executor's behalf, so your team does not have to.
Send us the basics. Deceased's name, date of death, executor details and what you know about the assets.
Before any work starts, you and the executor know what is involved and what it costs.
We request records from the ATO, banks, share registries and super funds. We tell you early if something is going to take time.
Returns lodged, CGT worked out, and a plain English summary of the estate's tax position sent to you.
You get what you need to advise the executor on timing and holdbacks for distribution.
We know the biggest worry about referring work is losing control of the file. So here is how we work:
Estates are rarely simple. You need someone who can think through CGT, trusts and super together.
We write for executors who are grieving and stretched. Our summaries are short, plain and easy to pass on.
If ATO records or old paperwork will slow things down, we tell you upfront.
Quoted before we start, so there are no awkward conversations later.
Local teams for Brisbane and Far North Queensland. Secure digital systems for firms everywhere else.
We work with wills and estates lawyers across Brisbane and South East Queensland, from CBD firms to suburban and Gold Coast and Sunshine Coast practices.
Regional estates often involve farming land, investment property and family members spread across the country. We support Cairns and FNQ law firms with the same service and response times as the city.
Estate tax is federal. The ATO rules are the same in every state, so we can support law firms anywhere in Australia using secure digital document sharing and video meetings.
A quick guide your team can share with executors.
The deceased person usually needs one last individual tax return. It covers 1 July up to the date of death. Any older returns that were not lodged also need to be caught up.
Once someone passes away, the estate becomes its own taxpayer. Income earned after death, like rent, interest or dividends, belongs to the estate. For the first three income years, the estate can be taxed at individual rates with the full tax-free threshold. After that, less favourable rates can apply to income no beneficiary is entitled to. This is one reason long running estates need tax planning.
There is no tax simply because someone inherits an asset. CGT usually comes up later, when the asset is sold. What the beneficiary pays depends on when the deceased bought the asset:
If the home was the deceased's main residence and was not being used to earn income, a sale can be fully free of CGT if settlement happens within two years of death. The ATO can extend this in some situations. Timing matters, so it is worth getting advice before the property is listed.
When certain assets, like shares, pass to a beneficiary who is not an Australian tax resident, CGT can be triggered just before death. That tax falls on the deceased's final return, not the beneficiary. This catches many estates off guard.
Super does not automatically form part of the estate. If it is paid to the estate, how it is taxed depends on who ultimately benefits. Adult children who were not financially dependent can face tax on part of the benefit. A spouse or dependant usually does not.
An executor who pays out the estate before tax is sorted can be personally responsible for tax the estate still owes. Confirming the tax position before final distribution protects the executor, and gives your advice a solid base.
This guide is general information only and is not tax or legal advice for any individual estate. Every estate is different.
Send us the details using the form below, or book a short call. We will let you know what is involved, what we need, and a fixed fee to get it done.
No. Australia has no inheritance tax or estate tax. Queensland and the other states abolished their death duties decades ago. However, the deceased's final income, the estate's income, and capital gains on estate assets can all still be taxed.
Usually two types. First, a final individual "date of death" return for the person who passed away. Second, trust tax returns for the estate for each year it earns income while being administered, where lodgement is required. Any prior year returns that were never lodged must also be caught up.
The executor or administrator (the legal personal representative) is responsible. Most executors appoint a registered tax agent to do the work, and many estate lawyers refer this to an accountant they trust.
For the first three income years after death, income that no beneficiary is entitled to can be taxed at the same rates as an individual, including the full tax-free threshold. No Medicare levy is payable on that income. From the fourth year, higher rates can apply, so long running estates should be reviewed.
Often not, if the rules are met. If the house was the deceased's main residence, was not used to earn income, and settlement happens within two years of death, the sale is usually free of CGT. Different rules apply if the home was rented out or the deceased bought it before 20 September 1985.
Not at the time they inherit. Tax usually only arises when the beneficiary later sells the asset. At that point, CGT is worked out using the cost base rules for inherited assets.
Extra tax can apply. When some assets, such as shares, pass to a beneficiary who is not an Australian tax resident, a capital gain can be triggered in the deceased's final return. Non-resident beneficiaries can also affect the estate's trust tax returns. It is worth checking before assets are transferred.
It depends on who receives it. Super death benefits paid to a spouse or financial dependant are generally tax-free. Adult children who were not financially dependent may pay tax on the taxable part of the benefit, including when it is paid through the estate.
Yes. If an executor distributes the estate before paying or allowing for tax that is owed, they can be personally liable up to the value of what they distributed. This is why confirming the tax position before final distribution matters.
It depends on the estate. Simple estates can be finalised within a few months once records are available. Estates with missing returns, property sales or overseas beneficiaries take longer. We give you an honest timeline once we have scoped the work.
Yes. Once a testamentary trust is set up under a will, it needs its own tax returns each year and ongoing advice on distributions. Income distributed to children from a qualifying testamentary trust is generally taxed at adult rates, which is one of its key features.
We can catch them up. We request income records from the ATO and other sources, prepare the missing returns and lodge them. It is common and fixable, but it does add time, so the earlier we start, the better.
You refer the estate, we scope it and quote a fixed fee, then handle the tax work and keep you updated. You stay the main contact for the executor. We do not give legal advice, and anything legal comes straight back to you.
No. We have teams in Brisbane and Cairns, but estate tax rules are the same across Australia. We work with law firms nationwide using secure digital document sharing and video meetings.
It depends on how complex the estate is and how many returns are needed. We give you and the executor a fixed fee quote before any work starts. Accounting fees are usually paid from the estate.
The basics are the deceased's name and date of birth, date of death, tax file number if known, executor details, a copy of the will or grant of probate, and a list of known assets. If some of this is missing, we can still start and help track it down.
