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The ATO has commenced issuing rental data-matching letters to taxpayers whose tax returns may not align with information reported by third parties.

ATO to contact rental property owners over reporting discrepancies

💭 Rumours are swirling: Is a “death tax” coming back in Australia?
Short answer: The idea is gaining momentum — but nothing has been formally introduced as law.

🔍 What’s being proposed?
A new report by The Australia Institute suggests Australia could reintroduce an inheritance tax (“death duty”). Their modelling estimates around $10 billion per year in revenue from an inheritance tax alone.
They also propose related wealth measures, such as:
• A 2% wealth tax on net assets above roughly $5 million
• Re-examining the capital gains tax discount
These are discussion proposals, not legislation, but they have intensified public debate due to the massive transfer of generational wealth expected over coming decades.

❓ Is a “death tax” definite?
Not at this stage.
Key points:
• Australia currently has no federal inheritance or estate tax
• All proposals remain think-tank recommendations, not government policy
• Details such as thresholds, exemptions, rates and treatment of farms/businesses would significantly affect political viability
• Some suggestions indicate targeting large estates (e.g., over $5 million) to reduce intergenerational inequality

⚠️ Why this matters
If you are building wealth, planning your estate or preparing for asset transfer, these discussions could affect future strategies.
Possible impacts include:
• Family businesses, farms, real estate and trusts may face new tax pressures
• Illiquid assets could create complexity for heirs
• Early planning helps ensure your structures and succession plans are resilient if such taxes are introduced

🧭 What should you do?
• Stay informed on policy announcements and tax reform movements
• Review your estate plan, wills, trusts and asset structures
• Engage advisers to consider how you would manage an inheritance tax scenario
• Start thinking about strategies now:
– Is your asset mix flexible?
– Are your structures updated?
– Are succession plans in place?

📌 Bottom line:
A “death tax” is not law, but it is increasingly on the national agenda.
For medical professionals, high-net-worth individuals and families with significant assets, this is an early warning: review your legacy plans and ensure your wealth transfer strategy is future-proof.

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Why your accountant is the mentor you didn’t know you needed Looking for someone to guide your entrepreneurial journey? Your accountant could be the mentor you didn’t know you needed.