Author: Fi53(I'm new)I'm new 16 Feb 2026
Currently going through the process of Letters of Administration (there was no will) and one of the beneficiaries (there are 3x sons) who resides in the UK (the other two reside in Australia) wants to be the sole Administrator of the Estate (all located in Sydney).
Struggling to find concise and exact tax implications for this when it comes to selling the property and disbursement of the cash & superannuation.
1- Will the estate be considered a 'non resident estate' if an overseas administrator is appointed, and does this affect the tax free threshold and the CGT discount (if applicable) if sold by an overseas administrator?
2- Would FRCGTW @ 12.5% be payable upon sale/settlement? I understand it can be claimed back via the estate tax return, but is there a way or an option to apply for an exemption prior to sale/settlement? The deceased died November 2025 and hoping to sell property within the next 6 months (under 2 years)
Property was purchased in the 1970's, was the main residence and had no alterations/renovations
3- With the administrator being a foreign resident, does tax get withheld on beneficiary cash (bank account) & superannuation distributions for all benefactors? And if so, is this able to be claimed back?
Any assistance would be greatly appreciated as we try to navigate the complexities of all of this.
Thanks,
Fiona
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3 replies
ATO Certified Response
Author: NikkiATO(Community Moderator)Community Moderator ATO Certified Response16 Feb 2026
Hi @Fi53,
For tax, a deceased estate is a trust. A trust is an Australian resident for an income year if a trustee is a resident at any time in the year or its central management and control is in Australia at any time. Residency turns on those tests, not on the location of assets.
Separate to residency, the CGT outcome on the home is driven by the inherited‑property rules.
FRCGW applies unless the vendor provides a clearance certificate (for Australian‑resident vendors) or a variation is granted (for foreign‑resident vendors). Where the vendor is a trustee, the trustee applies (in the trustee capacity).
If a beneficiary is non‑resident, the trustee is assessed on that beneficiary’s share of the estate’s net income. The beneficiary can later claim a credit for tax paid on their behalf when they lodge an Australian return (if required). This applies only to income – it’s not a tax on returning capital of the estate.
For super death benefits, the tax depends on who receives the benefit (estate vs dependant/non‑dependant), the form (lump sum vs income stream), and components. You can read more about this on our website.
Author: Fi53(I'm new)I'm new 17 Feb 2026
Hi Nikki,
Thanks for that.
Just wanting to clarify - if the administrator of the estate is an overseas resident, the estate is considered by the ATO as a 'non resident estate' for tax purposes?
Is FRCGTW 100% refundable with the variation/clearance certificate?
Superannuation will be paid into the estate (not individuals) and if it is a non resident estate will withholding tax be payable?
Thanks again :)
