First 3 income years
Normally, a trustee who is assessed on the net income of a trust pays tax at the top marginal tax rate.
When you lodge your first trust tax return for the deceased estate, you can apply for a concessional rate of tax.
- The concessional rate is the same as the individual income tax rates, with the benefit of the full tax-free threshold.
- The concessional rate will apply for the first 3 income years of the deceased estate, unless there are material changes to the estate's circumstances.
- Deceased estates do not get the benefit of tax offsets (concessional rebates), such as the low-income tax offset. No Medicare levy is payable.
You cannot extend this concessional period beyond the first 3 income years.
Example: first 3 income years
Joan passed away on 5 April 2024.
The first income year for Joan's deceased estate is 6 April 2024 to 30 June 2024.
The second income year is 1 July 2024 to 30 June 2025.
The third income year is 1 July 2025 to 30 June 2026.
If Joan's deceased estate earned taxable income of $18,200 or less during these years, there is no tax payable.
End of exampleFourth income year and later
For deceased estates that continue to be administered beyond the third income year, the following tax rates apply.
|
Deceased estate taxable income (no present entitlement) |
Tax rates |
|---|---|
|
$0 – $416 |
Nil |
|
$417 – $611 |
50% of the excess over $416 |
|
$612 – $45,000 |
$97.76 plus 16% of the excess over $611 If the deceased estate taxable income exceeds $611, the entire amount from $0 will be taxed at the rate of 16% |
|
$45,001 – $135,000 |
$13,500 plus 30c for each $1 over $45,000 |
|
$135,000 – $190,000 |
$49,950 plus 37c for each $1 over $135,000 |
|
$190,000 and over |
$ 85,500 plus 45c for each $1 over $190,000 |
|
Deceased estate taxable income (no present entitlement) |
Tax rates |
|---|---|
|
$0 – $416 |
Nil |
|
$417 – $670 |
50% of the excess over $416 |
|
$671 – $45,000 |
$127.30 plus 19% of the excess over $670 If the deceased estate taxable income exceeds $670, the entire amount from $0 will be taxed at the rate of 19% |
|
$45,001 – $120,000 |
$8,550 plus 32.5c for each $1 over $45,000 |
|
$120,001 – $180,000 |
$32,925 plus 37c for each $1 over $120,000 |
|
$180,001 and over |
$55,125 plus 45c for each $1 over $180,000 |
|
Deceased estate taxable income (no present entitlement) |
Tax rates |
|---|---|
|
$0 – $416 |
Nil |
|
$417 – $670 |
50% of the excess over $416 |
|
$671 – $37,000 |
$127.30 plus 19% of the excess over $670 |
|
$37,001 – $90,000 |
$7,030 plus 32.5c for each $1 over $37,000 |
|
$90,001 – $180,000 |
$24,255 plus 37c for each $1 over $90,000 |
|
$180,001 and over |
$57,555 plus 45c for each $1 over $180,000 |