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Leaving money to your kids? What you need to know about Australia’s ‘death tax’
Australia has no death tax, but some taxes apply when people die or pass on assets, an opinion piece says.
Key points
- Australia does not have a death tax, but taxes can still apply when a person dies.
- Inheriting $500,000 in cash generally attracts no tax, according to Mark Chapman of HR Block.
- Super death benefits paid to non-dependant adult children are taxed at 15 per cent plus a 2 per cent Medicare levy.
Why it matters. Readers planning to leave super to adult children may face tax, which the article says is often avoided by withdrawing and recontributing it as a non-concessional contribution.
An opinion piece dated November 1, 2026 says Australia has no death tax, but several taxes can apply when a person dies or assets are passed on. Mark Chapman of HR Block says inheriting $500,000 in cash is generally tax-free, but super left to an independent adult child can face 15 per cent tax plus a 2 per cent Medicare levy. He estimates the tax bill on $500,000 of super left to such a child could be $85,000.
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Leaving money to your kids? What you need to know about Australia’s ‘death tax’
Opinion November 1, 2026 — 5:00am Real Money , a free weekly newsletter giving expert tips on how to save, invest and make the most of your money, is sent every Sunday. You’re reading an excerpt – you can sign up to get the whole newsletter in your inbox . US founding father Benjamin Franklin’s famous quote about nothing being certain in life other than death and taxes is frequently bandied around, most often by people who are grumpy about having to pay the latter. But what Franklin failed to consider is how the combination of both could result in one of the most bone-chilling, Boomer-worrying concepts ever: the dreaded death tax. Death taxes, in their simplest form, are either taxes levied on inheritances passed on to beneficiaries, or estate taxes, where the deceased person’s estate is taxed before assets are distributed. They’re generally deeply unpopular among taxpayers who, understandably, don’t love the idea of taxing what they consider to be gifts. Australia doesn’t have a death tax, but there are still some taxes that come into play when a person dies. Aresna Villanueva What’s the problem? But if it feels like we can’t embark on any sort of tax reform without the spectre of a “death tax” being raised in Australia, then you’re right. The 2019 federal election was besieged by a misinformation campaign suggesting the Labor Party intended to introduce one. And recently, the.