Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
2coffeesandcake(Newbie)Newbie
5 Jan 2023

Hello


Happy 2023!!!


I have a query related to inheritance tax.


Situation

- I am a foreign resident living overseas since 2017 and an Australian citizen

- I am a listed as a beneficiary of an Australian property and a cash gift in a testament will in Australia

-the Australian property is an investment property

-the person bequeathing is an Australian resident


Questions

1) will the property be subject to inheritance tax when it is received?

2) will the cash gift be subject to inheritance tax when it is received?


I'm aware that on disposal of any property in Australia a CGT event would take place (as its not primary residence), however can't find any guidance on inheritance tax specifically for foreign residents. This is the closest I have found https://www.ato.gov.au/Individuals/Deceased-estates/If-you-are-a-beneficiary-of-a-deceased-estate/

8,386 views
2 replies
Liked by 2coffeesandcake
8,386 views
2 replies

Most helpful response

Most helpful reply

JodieR_ATO(Community Support)Community Support
5 Jan 2023

Hi @2coffeeandcake,


There's no tax payable if you inherit cash from an estate. However, if you inherit a property and you're a foreign resident, you would be looked at for CGT when you sell or dispose of the property. You can still walk through the questions under inherited dwellings. If this was the main residence of the deceased person and you sell it within 2 yrs, you can apply a partial exemption for the time it was the deceased person's main residence, but the period you owned the property would be looked at for CGT.


From the link above once you've gone through the questions, you can also view the information under foreign residents and inherited property.

All replies

Most helpful reply

JodieR_ATO(Community Support)Community Support
5 Jan 2023

Hi @2coffeeandcake,


There's no tax payable if you inherit cash from an estate. However, if you inherit a property and you're a foreign resident, you would be looked at for CGT when you sell or dispose of the property. You can still walk through the questions under inherited dwellings. If this was the main residence of the deceased person and you sell it within 2 yrs, you can apply a partial exemption for the time it was the deceased person's main residence, but the period you owned the property would be looked at for CGT.


From the link above once you've gone through the questions, you can also view the information under foreign residents and inherited property.

Featured articles

Tax tips for managing your side hustle

22 Apr 2024 · 6 min read time

Tax on gifts and inheritances

15 Apr 2026 · 5 min read time

How much tax should I pay on a second job? Claiming the tax-free threshold

15 Apr 2026 · 4 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3245 likes

  2. Taxduck

    (Taxicorn)

    2035 likes

  3. PayrollDeanne

    (Taxicorn)

    804 likes

  4. YellowPotato

    (Taxicorn)

    513 likes

  5. knaresbro

    (Devotee)

    358 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    10370contributions

  2. Taxduck

    (Taxicorn)

    4721contributions

  3. PayrollDeanne

    (Taxicorn)

    2040contributions

  4. YellowPotato

    (Taxicorn)

    1325contributions

  5. YEP

    (Devotee)

    837contributions

Loading
Non Resident - Taxes on property and lump sum inheritance | ATO Community