Tax Accountant Perth | Best Tax Accountant in Perth | Tax Return PerthTax Accountant Perth | Best Tax Accountant in Perth | Tax Return Perth
When someone passes away, most families expect legal matters like probate and asset distribution. What many don’t expect is how complex tax obligations can become after death. In Australia, tax responsibilities don’t automatically stop. In fact, for executors, they often become more complicated.
One of the most common questions executors ask is simple but critical:
Who needs to lodge a deceased estate tax return, and when does it need to be done?
This article explains deceased estate tax returns in plain English, focusing on Australian rules, common mistakes, and what executors should realistically expect.
From the ATO’s perspective, a deceased estate comes into existence immediately after death. It includes everything the person owned and any income generated before assets are fully transferred to beneficiaries.
This can include:
Once the estate starts earning income after the date of death, it may need its own tax file number (TFN) and its own tax return.
Not always but many estates do require them.
There are usually two possible tax returns involved:
This return covers the period from 1 July until the date of death. It includes income the person earned while they were alive, such as:
This return is treated much like a normal individual tax return, but it must be marked as “final”.
If the estate earns income after the date of death, a separate deceased estate tax return may be required. This includes:
Many executors assume that distributing assets quickly avoids tax. Unfortunately, that assumption often leads to compliance issues.
The legal responsibility sits with the legal personal representative (LPR). This is usually:
The executor is responsible for:
This responsibility continues until the estate is fully finalised. Many executors choose to engage a Deceased Estate accountant perth to reduce personal risk and avoid mistakes.
Timing depends on the estate’s activity.
Final Individual Tax Return
Deceased Estate Tax Return
Some estates close within months. Others especially those involving property sales or disputes—remain open for years and require multiple annual returns.
Yes, but the rules are slightly different.
For the first three years, deceased estates generally receive concessional tax treatment, including access to the tax-free threshold. After this period, higher tax rates can apply, which is why prolonged estate administration often creates unexpected tax costs.
This is one reason professional advice can be valuable early in the process.
In Australia, beneficiaries do not pay tax on the inheritance itself. However, tax may apply when:
Clear reporting helps prevent confusion, especially when multiple beneficiaries are involved.
Capital gains tax (CGT) is often the most misunderstood part of deceased estate taxation.
Key points include:
Without careful planning, executors can accidentally create unnecessary CGT liabilities. With the right advice, it’s often possible to legally save on capital gains tax while remaining fully compliant.
Things become more complex when the deceased or beneficiaries live overseas.
Common issues include:
In these cases, working with an expat tax accountant perth is often essential. Executors may also need to refer to a reliable Expat Tax Return Guide to understand cross-border obligations and avoid penalties.
If the deceased operated a business, additional responsibilities may apply after death.
These can include:
Many executors are unfamiliar with what is bas and how it continues after death. This is where support from a bas accountant perth can prevent missed lodgements and ATO issues, particularly if the business continues trading temporarily.
Even well-intentioned executors often run into trouble by:
Once mistakes are made, fixing them can be costly and stressful.
The ATO expects executors to understand their obligations, even during difficult circumstances. Notices, deadlines, and requests for information still apply.
Knowing how to manage ato communications properly can prevent escalation, audits, and penalties. Many executors prefer professional representation to avoid personal stress and liability.
You should strongly consider professional help if:
Many executors ultimately decide to hire a tax accountant rather than risk errors. A qualified tax accountant perth can handle compliance while keeping the estate moving forward.
Deceased estates aren’t just about compliance there are also planning opportunities.
These may include:
In more complex cases, working with a business advisor perth ensures tax decisions align with estate and financial goals.
Deceased estate tax returns are often underestimated, yet they carry serious legal and financial consequences. Executors who understand who must lodge and when are far better equipped to manage the process smoothly.
Australian tax law gives estates certain concessions but only if rules are followed correctly. Getting advice early can reduce stress, prevent penalties, and protect both the executor and beneficiaries.
If you’re unsure about your responsibilities, professional guidance can make a difficult time significantly easier.
