This Australia inheritance tax calculator answers two questions. First: how much inheritance or estate duty is due on a bequest in Australia? The answer is always zero — Australia has had no death duties since 1979. Second, and more usefully: what deferred capital gains tax might you owe when you later sell an inherited asset?
How it works
There is no estate tax to compute, so the bequest passes to beneficiaries in full. The real liability is CGT on disposal. For assets the deceased acquired after 19 September 1985, the beneficiary generally inherits the deceased’s cost base. When you sell:
assessable gain = sale price − inherited cost base, halved by the 50% CGT discount if the asset has been owned (across both you and the deceased) for more than 12 months.
That discounted gain is added to your income and taxed at your marginal rate — exactly like any other capital gain.
Example
You inherit shares the deceased bought for $30,000. There is no inheritance tax. Two years later you sell them for $50,000, a $20,000 gain. The 50% discount halves it to a $10,000 assessable gain; at a 30% marginal rate that is about $3,000 of CGT — payable by you, not the estate.
Notes
This is an estimate. The two-year main-residence window, pre-1985 assets, and superannuation death benefits (which can be taxed when paid to non-dependants) follow separate rules not modelled here. Always confirm with a registered tax agent.