Date of Death Tax Return Australia: What the Executor Must File with the ATO

Most executors assume that once they have obtained probate, paid the funeral, and started distributing the estate, the administrative work is nearly done. Then the tax obligations arrive.

In Australia, a death triggers two separate but related tax filing obligations — the date of death tax return for the deceased, and potentially ongoing trust tax returns if the estate takes time to administer. Both obligations land on the executor. Both carry personal liability if missed.

What Is a Date of Death Tax Return?

When a person dies, they remain a taxpayer for the period from 1 July of the financial year in which they died up to the date of death. This final income tax return — called the date of death return — covers that partial year.

It reports:

• Employment income earned up to the date of death
• Interest, dividends, and other investment income received in that period
• Rental income
• Any capital gains from asset disposals during the partial year
• Any government payments (Age Pension, disability support, etc.)

The tax is calculated in the same way as a standard individual return, applying the full-year tax rates and thresholds to the partial-year income on a pro-rata basis.

The Critical Detail: Paper Only

The date of death return cannot be lodged through myGov or the ATO's online services. When a person dies, their myGov access is typically disabled, and the deceased cannot have an active myGov account. The executor must lodge the return on paper using a standard individual income tax return form, marking it clearly as a "date of death return."

Submit it to: Australian Taxation Office
GPO Box 9845
[Capital city of your state or territory]

In NSW, the address is GPO Box 9845, Sydney NSW 2001.

This surprises many executors who have managed their own tax affairs digitally for years and assume all tax lodgment is now electronic. The paper-only requirement is a real process step with a real mailing address.

Who Receives the Tax Refund or Pays the Tax Bill?

If the date of death return produces a refund, the ATO pays it to the estate. The executor deposits it into the estate bank account and distributes it to beneficiaries as part of the final estate settlement.

If the return produces a tax liability — common when the deceased received income from multiple sources, or had investments with untaxed earnings — the executor must pay it from estate funds before distributing the residuary estate. If the executor distributes estate assets before paying the ATO debt, they become personally liable to the ATO for that amount. This is not a theoretical risk. The ATO actively pursues executors who distribute without clearing the tax.

The Tax Return Deadline

The date of death return follows the normal lodgment deadline: 31 October following the end of the financial year in which the person died, or a later date if a registered tax agent is engaged.

For a person who died on 15 March 2026, the financial year ended 30 June 2026, and the return is due by 31 October 2026.

For a person who died on 20 August 2026, the financial year end is 30 June 2027, and the return is due 31 October 2027 (or later with a tax agent extension).

There is no special extension for deceased estates simply because the estate is still in administration. If the executor anticipates delays, engaging a registered tax agent early is strongly recommended — tax agents receive extended lodgment schedules that can push the deadline to May of the following year.

When the Estate Needs Its Own Tax File Number

If the estate continues to earn income after the date of death during the administration period — rent from an investment property, dividends from a share portfolio, interest on cash at bank — the estate itself becomes a separate taxable entity.

The executor must apply for a Trust Tax File Number (TFN) for the deceased estate through the ATO. The estate is treated as a trust for tax purposes. The ATO form is Tax File Number – Application or Enquiry for a Trust or Deceased Estate, which can be completed online through the ATO's business portal.

Once the trust TFN is active, the executor lodges a trust tax return for each financial year in which the estate earns income. The estate does not have its own Medicare Levy. It does benefit from the standard adult individual tax-free threshold ($18,200) during the first three income years of administration, which is a meaningful concession for estates generating modest income.

After three income years, the concessional threshold disappears and the estate is taxed at the top marginal rate (45%) on all income. This creates a genuine incentive to finalise the estate promptly rather than letting administration drag on.

The Practical Sequence

Step 1: Notify the ATO of the death (via phone 13 28 61 or through the Australian Death Notification Service).

Step 2: Locate prior-year tax returns to understand the deceased's income sources, outstanding lodgments, and whether they were registered for GST or other tax obligations.

Step 3: Lodge the date of death return as soon as you have the complete income information. Do not wait until the probate process is resolved — the tax return is independent of the estate administration timeline.

Step 4: Apply for a trust TFN for the estate if it holds income-producing assets.

Step 5: Obtain a Tax Clearance Letter (sometimes called a comfort letter) from the ATO confirming no outstanding liabilities before distributing the estate. While this is not a formal legal requirement, it is standard practice for executors who want protection against personal liability.

Step 6: Lodge trust tax returns for each year the estate earns income, paying any tax from estate funds before distribution.

Capital Gains in a Deceased Estate

The date of death return may include capital gains if the deceased sold assets before dying. More commonly, executors face capital gains tax questions about assets sold after death during administration.

The general rule for Australian residents:

• A beneficiary who receives a pre-CGT asset (acquired before 20 September 1985) inherits the asset at the date-of-death market value, with no CGT on the transfer. Future gains are calculated from that value.
• For post-CGT assets, the beneficiary inherits the asset at the deceased's cost base or (if the deceased held it for more than 12 months) is entitled to the 50% CGT discount on future gains
• The main residence exemption can be extended for up to two years after death if the property was the deceased's principal residence and is actively being sold

The capital gains rules for deceased estates are complex and interact with the two-year land tax exemption and the NSW property transfer rules. An accountant experienced in deceased estate administration should review any estate that includes investment properties, shares, or other capital gains-producing assets.

How This Differs in NSW

There are no separate NSW income tax obligations — income tax in Australia is federal. However, NSW executors need to coordinate the ATO's tax obligations with Revenue NSW's land tax and transfer duty rules, which run on completely separate timetables and require separate forms and payments.

The interaction most commonly causes problems when an executor is trying to close the estate and faces simultaneous demands from the ATO (outstanding income tax), Revenue NSW (land tax or transfer duty assessments), and beneficiaries who are impatient for their distributions.

The correct order: clear all tax liabilities first, obtain clearance confirmation from both the ATO and Revenue NSW, then distribute.

Navigating the ATO's deceased estate obligations alongside NSW's state tax rules is one of the most technically demanding parts of estate administration. The New South Wales Survivor Benefits Navigator includes a tax obligation timeline for NSW executors, covering the date of death return, the trust TFN process, and the land tax coordination steps needed before final distribution.

See more New South Wales guides →