{"id":18780,"date":"2026-10-21T14:21:34","date_gmt":"2026-10-21T03:21:34","guid":{"rendered":"https:\/\/chuatan.com.au\/?p=18780"},"modified":"2026-10-21T14:21:34","modified_gmt":"2026-10-21T03:21:34","slug":"inheritance-from-overseas-australia-tax","status":"publish","type":"post","link":"https:\/\/chuatan.com.au\/en\/inheritance-from-overseas-australia-tax\/","title":{"rendered":"Inheritance From Overseas: Australian Tax and Moving the Money"},"content":{"rendered":"
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A parent or grandparent has passed away in Kuala Lumpur, Shanghai, Hong Kong or Singapore, and you live in Australia. After the grief comes a practical question: when the estate is finally distributed, what happens when that money arrives here? Will the ATO tax it, will the bank ask questions, and how do you actually get the funds out of the other country?<\/p>\n

These are some of the most common questions our clients ask. The short answer is reassuring: Australia has no inheritance tax. The longer answer is that the way the money reaches you, what it earns along the way and how it is documented all matter.<\/p>\n\n

Is there inheritance tax in Australia on money from overseas?<\/h2>\n

No. Australia abolished its estate and death duties decades ago. Receiving an inheritance, whether from an estate in Australia or overseas, is generally not treated as income in your hands. A distribution of the capital of a foreign deceased estate, such as a share of the proceeds after your father’s flat in Penang is sold, is usually not something you include in your tax return simply because you received it.<\/p>\n

The country where the deceased lived may have its own rules. Some places in Asia have no estate duty at all, while others tax particular assets or transfers. Those taxes are dealt with under that country’s law, usually by the executor before distribution.<\/p>\n\n

When part of the inheritance can be taxed in Australia<\/h2>\n

Australian residents are taxed on their worldwide income. That means some amounts connected with an overseas inheritance can still be taxable here.<\/p>\n

Income earned after you become entitled<\/h3>\n

If inherited assets earn rent, interest or dividends, that income can be assessable to you once you are presently entitled to it, or to the executor in some circumstances. Estates in Asia can take years to finalise, so income can build up. Ask the executor for a breakdown between original capital and income earned after death.<\/p>\n

Distributions from foreign trusts<\/h3>\n

Many wealthy Asian families hold assets through trusts or similar structures rather than in personal names. If you receive money or property from a foreign trust, Australian tax law (section 99B of the 1936 Assessment Act, in general terms) can include the amount in your assessable income. Amounts that represent the trust’s original capital (corpus) may be excluded, but the rules are technical, and an interest charge can also apply to distributions of accumulated income. The ATO expects you to keep evidence of where the money came from. If an overseas estate pays you through a family trust, holding company or foundation, get tax advice before the funds are transferred.<\/p>\n

Assets you keep and later sell<\/h3>\n

If you inherit an overseas property or shares and keep them, capital gains tax may apply when you later sell. The rules on cost base for inherited assets are specific, and the CGT changes legislated in 2026 apply to gains accruing after 1 July 2027. Record the market value of each asset at the date of death.<\/p>\n\n

Exchange rate gains<\/h2>\n

An inheritance usually arrives in ringgit, renminbi, Hong Kong or Singapore dollars. If you hold the money in a foreign currency account and convert it to Australian dollars later, a foreign exchange gain or loss can arise for tax purposes when the rate has moved. The same can happen if you keep a foreign currency deposit overseas. These amounts are often small compared with the inheritance but can be significant for large sums held for a long time. Your accountant will need the dates and rates.<\/p>\n\n

Bank checks and AUSTRAC reporting<\/h2>\n

Australian banks and remittance providers report international transfers to AUSTRAC, the Australian government’s financial intelligence agency, as part of their normal obligations. This is routine and does not mean you have done anything wrong. You do not lodge a separate declaration for a bank transfer.<\/p>\n

Your bank may still ask where a large deposit came from. Have the following ready:<\/p>\n