Australia: Inheritance Tax

The 2026 federal Budget introduced significant changes to capital gains tax, negative gearing, and discretionary family trusts that may impact your estate planning strategy.

In this edition of It depends, partners Scott Hay-Bartlem and Clinton Jackson bring the latest updates on the government's proposed tax on large super balances, including the introduction of indexation.

Much has been written about the ever approaching "unprecedented" intergenerational wealth transfer, in which between AU$3.5 trillion and Au$5.4 trillion in assets is expected to pass from the Baby Boomers to their heirs.

The Commissioner of Taxation confirmed that trust distributions for this income year must be made on or before 30 June.

This year, 30 June means 30 June: all bets are off in relation to any ATO administrative accommodation.

The Government is seeking comment on proposed reforms to taxation of trusts.

In May this year the Government, in responding to the Board of Taxation Review of the Tax Arrangements applying to Managed Investment Trusts (MITs) proposed a number of significant changes to the taxation of MITs

The Victorian lease duty provisions took effect from 21 November 2008. Although the provisions were stated to be an anti-avoidance measure, targeting duty avoidance schemes involving "long term leases", the provisions as enacted contain no minimum term requirement. Potentially, leases of only 1 day can be caught. As a result, uncertainty has surrounded the introduction of the provisions. On 16 August 2010 the SRO issued Duties Revenue Ruling DA.052 - 'Lease Provisions - General Application'. The

The Government recently introduced a Bill to amend the super fund borrowing rules by replacing the existing exception in section 67(4A) of the Superannuation Industry (Supervision) Act 1993 with sections 67A and 67B.