Tax Treatment of Lump Sum Death Benefit Paid from the UK

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(Newbie)Newbie

21 July 2024

My wife is an Australian Citizen/Resident/Taxpayer with no connections to the UK.
In 2021, her Uncle died in the UK aged 84 - he was originally from NZ but had lived in the UK for many decades and had no connection to Australia.
When he died he had a Self-Invested Personal Pension (SIPP) with a UK financial services provider (FSP).
That FSP, acting as administrators of his SIPP, paid my wife a small Lump Sum Death Benefit in October 2023.
She received around GBP9,000 and the FSP deducated from this about GBP2,500 as Income Tax and presumably remitted this to the UK HMRC.
The FSP has provided her with HMRC P45 Forms that show the detail of what they did.
Is the gross amount of the Lump Sum Death Benefit considered to be taxable income in Australia for my wife, and if so, where does it get included in her tax return?
If the amount is taxable, can my wife claim a tax credit in her Australian 2023/24 tax return for the tax that has been deducted in the UK, and if so, where is this done in her tax return?

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