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  • Completing items in the trust tax return

    As the executor preparing the Trust tax return for the deceased estate, you need to include income, capital gains, super lump sums or employment termination payments (ETP). No Medicare levy is payable on a deceased estate.

    Show the name of the trust as 'ESTATE OF JOHN CITIZEN DECEASED' or similar.

    On this page:

    Deceased estate income

    You need to include:

    • all income you have not yet distributed
    • income you have distributed to a beneficiary who is
      • under a legal disability
      • a non-resident, unless it is franked.
       

    You don't include capital gains or losses arising from assets that pass under the will to a beneficiary that is a tax-advantaged entity, or who is a non-resident.

    These capital gains or losses are reported in the date of death tax return. See, Doing a date of death tax return.

    If you transfer an asset to the beneficiary as part of the will, you don't include the capital gain or loss. However, if you transfer or sell an asset for any other reason, you need to include any capital gain or loss, even if the transfer or sale is to someone who is a beneficiary.

    If the deceased had any unapplied net capital losses when they died, these can't be passed on for you to offset against any net capital gains of the deceased estate.

    Find out about:

    Superannuation lump sums and ETP's

    If the deceased person's employer pays a death benefit employment termination payment (ETP) to you as the deceased person's executor, you will receive a PAYG payment summary – employment termination payment.

    Your payment summary will show the tax-free and taxable components. It is taxed in the same way it would have been taxed if the payment was made directly to the beneficiaries. However, the Medicare levy does not apply.

    See also:

    Last modified: 29 Apr 2021QC 49910