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Edited version of private advice
Authorisation Number: 1051580694010
Date of advice: 16 September 2019
Ruling
Subject: Tax on inheritance
Question
Is the money you received from the estate of your relative treated as assessable income?
Answer
No.
The money received from the deceased estate is not ordinary income or statutory income and therefore is not assessable income under subsection 6-5 of the Income Tax Assessment Act 1997, however the foreign exchange rules (forex) may apply. Further information about this can be found by searching 'QC 16583' on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
1 July 2019
Relevant facts and circumstances
Your relative lived overseas.
They passed away in mid 20XX.
You received a sum of money from their estate and the funds were transferred to Australia late 20XX.
No income from interest was generated prior to the money arriving in Australia.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 6-5(2)