Private ruling: Tax on inheritance
Date of advice: 16 September 2019
Published: November 2019
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2019

Ruling: Q1: Is the money you received from the estate of your relative treated as assessable income? | A1: 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

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)