New ATO Processes for Deceased Estates
Article by Claire Wilson
*Disclaimer: This blog is NOT financial or accountancy advice.
Managing taxation affairs for a deceased Estate in Australia involves several key responsibilities that fall primarily to the Legal Personal Representative (LPR), typically the Executor named in the Will, or an Administrator appointed by the Court.
The process begins with notifying the Australian Taxation Office (ATO) of the death and establishing authority to act on behalf of the Estate, which requires documentation such as a certified copy of the Death Certificate and Will, or a Grant of Probate or Letters of Administration.
The LPR must then attend to lodging a final individual tax return for the deceased, covering the period from the start of the financial year to the date of death, as well as ensure any outstanding tax liabilities are paid.
Where an Estate continues to generate income (such as from investments, rental properties, or shares) it is treated as a separate taxpaying entity and may be required to lodge trust tax returns annually until the Estate’s administration is complete.
New Requirements for Notifying the ATO of a Deceased Person
The ATO has updated its processes for officially notifying them of a person’s death and identifying who will manage the deceased Estate. These changes aim to streamline identity verification and ensure proper handling of tax affairs related to deceased individuals.
The first step in completing the new notification process is to complete the Notification of a Deceased Person online form, of which can be accessed via the following link: Notification of a deceased person | Australian Taxation Office.
Once the online form is completed, LPRs will receive an application summary via email. This can either be provided, in person, alongside supporting documents, to a participating Australia Post office or posted directly to the ATO.
The supporting documents required include a certified copy of the Death Certificate, an accompanying certified copy of the Will or relevant Grant, depending on the Estate’s circumstances, and the LPR’s photographic identification.
Once these documents are lodged, whether at a participating Australia Post office or by mail, the notification will be processed by the ATO such that the LPR, or an authorised tax agent, is then approved to manage the tax affairs for an Estate.
For more details, visit the ATO’s official website or consult the ATO’s website: –https://identityservice.auspost.com.au/atoforms/nodp/faq
If you require advice as to your obligations as an Estate’s LPR, or queries in relation to Estate administration generally, please do not hesitate to reach out to our friendly Wills and Estates team!
The blog published by Spranklin McCartney Lawyers is intended as general information only and is not legal advice on any subject matter. By viewing the blog posts, the reader understands there is no solicitor-client relationship between the reader and the blog publisher. The blog should not be used as a substitute for legal advice from a legal practitioner, and readers are urged to consult Spranklin McCartney Lawyers on any legal queries concerning a specific situation.
