Author: JayATO(Community Support)Community Support 11 Feb 2026
Hi @okberty,
Inheritances received from overseas, including distributions from a New Zealand family trust, are generally not taxable in Australia. You don't need to pay tax on the inheritance money itself when it's transferred to Australia, regardless of whether you transfer it immediately or leave it in your New Zealand bank account temporarily.
However, there are some important points to consider about the trust distribution. If the money or asset has come from a foreign trust, even if received through another person, you may need to include the amount or value in your assessable income. This is different from a simple inheritance or gift. You can find more information on receiving payments from foreign trusts on our website.
For evidence purposes, if we ask for proof that the money is an inheritance, you'll need written documentation. Ask the executor or trustee for a letter stating that the distribution is part of your inheritance entitlement under the estate. The will and any trust distribution documentation showing you as a beneficiary would support this.
It's also important to note that while the inheritance itself isn't taxable, any income you earn from the money after you receive it will be taxable. For example, if the money sits in your New Zealand bank account and earns interest, that interest income is assessable in Australia since you're an Australian resident for tax purposes. You'll need to declare this investment income on your Australian tax return.
To clarify your specific situation with the trust distribution and ensure you meet all reporting requirements, you can find detailed guidance on receiving payments from foreign trusts on our website. If your situation is complex, you may wish to consult a registered tax professional who can review your specific circumstances.
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