Looking for some clarity around two items of distributions as result of a Deceased Estate (not Testamentary Trust, just straight forward Will).
Superannuation Death Benefits: ATO, QC45254 outlines the tax rates payable for non dependents. It goes on to say that foreign tax residents receive the same tax treatment as Australian Residents (less Medicare Levy) but it goes on to say if the beneficiary is a tax resident of a country that has a double tax agreement with Australia, there may be no Australian tax imposed.”
Question 1: Based on the above - if you distribute your super death benefit to a non-dependant who is a foreign resident of a country that has a tax treaty in force, does the Deceased Estate Tax Return have to pay tax on these payments or not? How does is this filled out in the DE Tax Return if they actually don't need to pay tax on it as it appears the tax is automatically calculated.
Question 2: There is a lot of information about tax rates on income from deceased estate. I take this to mean any income generated after date of death. If the deceased distributes cash (from their savings account) as part of their Will to overseas/non residents, are there any tax consequences?
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