How do I notify the ATO of a death in Australia?

Call the ATO on 13 28 61 and advise that a taxpayer has died. Have the deceased's Tax File Number (TFN) ready. The ATO will cancel the individual's TFN and set up an estate TFN if required. Source: ATO ato.gov.au/individuals-and-families/deceased-estates.

Does a deceased person need to lodge a final tax return?

Yes. The executor or administrator must lodge a final tax return (called a date of death return) for income earned up to the date of death. This is lodged with the ATO and must include salary, super, dividends and any other income. Source: ATO.

What is an estate tax return in Australia?

If the estate earns income after the date of death (e.g. rent, interest, dividends) before it is distributed, the estate must lodge an estate income tax return for each financial year it earns income. Source: ATO ato.gov.au/individuals-and-families/deceased-estates.

Is capital gains tax payable when you inherit property in Australia?

Generally no CGT is payable when a property passes from a deceased person to their executor or beneficiary. CGT applies when the beneficiary later sells the asset. The cost base depends on when the asset was originally acquired — pre or post 20 September 1985. Source: ATO.

ATO Deceased Estate — Tax Obligations After Someone Dies in Australia

Tax obligations don't stop at death. The executor or administrator is personally responsible for ensuring the ATO is notified, any final tax return is lodged, and estate income is properly reported. Failing to do so can result in personal liability for the executor.

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Official source

All information sourced from the ATO's Deceased Estates page. Tax rules are complex — seek advice from a registered tax agent for your specific circumstances.

Step 1 — Notify the ATO

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Call 13 28 61 — have the TFN ready
Call the ATO on 13 28 61. Have the deceased's Tax File Number (TFN) and date of death ready. The ATO will mark the individual as deceased and tell you the next steps. You can also write to the ATO or have a registered tax agent act on your behalf.
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Request an Estate TFN (if needed)
If the estate will earn income before it's distributed (e.g. rental income, dividends, bank interest), you'll need to register the estate as a separate taxpayer with its own TFN. Source: ATO

Step 2 — Lodge the final (date of death) tax return

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The executor must lodge this return

The final return covers income from 1 July to the date of death. Include all employment income, super pension payments, dividends, interest, and rental income received up to that date. Label the top of the return "DECEASED ESTATE" and write the date of death.

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Employment income (PAYG payment summary / income statement)

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Interest from bank accounts up to date of death

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Dividends and trust distributions received before death

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Rental income earned before date of death

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Super lump sums or pension payments received before death

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Deadline

The final return deadline is 31 October of the year following the date of death (or by 31 January if using a registered tax agent). Source: ATO

Step 3 — Estate income tax return

If the estate earns income after the date of death — for example, rent from an investment property while it's being sold, or interest from accounts before they're closed — the estate must lodge an income tax return for each financial year it earns that income.

Income type	Taxed at
Estate income to be distributed to a beneficiary within 3 years	Beneficiary's marginal rate
Estate income retained (not distributed within 3 years)	Top marginal rate (47%)
Income distributed to an under-18 minor beneficiary	Special penalty rates may apply

Source: ATO ato.gov.au/individuals-and-families/deceased-estates

Step 4 — Capital gains tax (CGT) on inherited assets

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Principal place of residence (family home) — CGT-exempt if the beneficiary sells within 2 years of the date of death and it was the deceased's main residence. Source: ATO s118-195 ITAA 1997

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Shares and investment assets (post-1985) — CGT applies when the beneficiary sells. The cost base is the market value on date of death. The 50% CGT discount may apply if held more than 12 months.

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Assets acquired before 20 September 1985 (pre-CGT) — generally exempt from CGT. Beneficiary takes the asset at market value at date of death as cost base.

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Frequently asked questions

ATO deceased estate FAQs

Call 13 28 61 with the deceased's TFN and date of death. The ATO will mark the individual as deceased. Source: ato.gov.au/individuals-and-families/deceased-estates

If the estate earns income before it's distributed, yes. Register the estate as a taxpayer with its own TFN by calling 13 28 61 or applying at ato.gov.au. Source: ATO.

No. Australia abolished inheritance tax (death duties) in 1979. There is no inheritance tax on assets passing to beneficiaries. However, CGT, income tax on estate income, and super death benefit tax may apply depending on the circumstances. Source: ATO.

You can lodge it yourself via myTax if you're confident, but estate tax can be complex — especially if there are capital gains or multiple beneficiaries. A registered tax agent is recommended. Source: ATO.

ATO deceased estate — tax obligations after a death

Step 1 — Notify the ATO

Step 2 — Lodge the final (date of death) tax return

Step 3 — Estate income tax return

Step 4 — Capital gains tax (CGT) on inherited assets

ATO deceased estate FAQs