Legal perspective: Australia has no inheritance tax!
Australia’s estate tax was not enacted by the federal government. It was formulated by the state governments. After 1992, the states completely abolished the estate tax, which made Australia the world’s first wealthy country to cancel the estate tax. Therefore, strictly speaking from the legal point of view, there is no inheritance tax in Australia. In addition, there is no gift tax and death liability in Australia (death duty means not having to bear all the debts incurred due to death after death).
No inheritance tax does not mean that you do not have to pay taxes!
Of course, state welfare is always closely related to taxation. Without inheritance tax does not mean that inheritance of inheritance in Australia does not require tax payment at all. In the case of certain conditions, the assets of the ancestors you inherit will be regarded by the government as an increase in your personal income, and you will need to pay CGT (Capital Gains Tax). But not all estates are subject to this tax.
How to collect CGT?
In Australia, the capital gains tax (CGT) is not an independent tax, it is a branch of income income Income Tax.
Housing estate value added tax
There is no need to pay VAT for inheritance of the estate – unless the house is sold until the sale of the house, the VAT is required.
If the estate was originally purchased on or before September 19, 1985, the following rules apply:
1. If the house is sold within two years of the death of the owner, VAT is exempt.
2. If it is sold after two years, VAT is still exempt if the following conditions are met:
A. No profit from the property, ie no rental;
B. The house is the self-occupation of the real estate successor, the spouse of the deceased, or other people have the right to live here according to the will.
If the deceased homeowner bought the house at the time of September 19, 1985, as a self-housing, then a more rigorous review is required to determine whether the house is subject to VAT when it is sold – must meet All of the conditions listed above. In addition, the property must be a self-contained residence that leaves the inheritor and is not used to generate any income.
Investment Housing Estate Value Added Tax
If the property is transferred to the beneficiary according to the will, there is no question of VAT. A VAT is required when the beneficiary finally sells the home.