Disclaimer — This guide provides general educational information only. It is not legal, financial, or tax advice. Estate-administration obligations vary…
Disclaimer — This material is provided for general educational purposes only. It is not legal, financial, or tax advice. Tax outcomes depend on individual circumstances and legislation that can change without notice. Queensland residents inheriting shares or managed investments should obtain personalised guidance from a licensed tax agent, financial planner, or solicitor before acting.
Overview
When a Queensland estate includes Australian-listed shares, exchange-traded funds (ETFs), managed-fund units, or overseas securities, beneficiaries usually ask two core questions:
- Will I pay tax straight away?
- What paperwork is required to transfer or sell the investments?
Transferring marketable securities rarely involves lodging documents with a government titles office, but most registries and brokers still insist on seeing a sealed grant of probate or letters of administration. Capital Gains Tax (CGT) does not arise merely because you inherit; it is triggered only when you dispose of the asset. Recording the correct cost base at the outset is therefore critical.
Immediate Tax Position: No “Inheritance Tax” but Cost Bases Matter
Australia abolished state death duties decades ago. Instead, beneficiaries inherit the deceased’s CGT cost base and pay tax only if (and when) they later sell.
- Shares acquired after 20 September 1985 (the start of CGT)
You inherit the deceased’s original purchase price plus any brokerage. - Shares acquired before 20 September 1985
The asset becomes “post-CGT” for you, with a cost base equal to the market value at the date of death. [1]
Hold the shares for at least 12 months after the deceased’s death and any future capital gain may qualify for the 50 % CGT discount.
Transfer Pathways and Required Documents
| Scenario | Executor / Beneficiary Paperwork | Key Pointers |
|---|---|---|
| ASX-listed shares (CHESS) | • Certified probate • Certified death certificate • Off-Market Transfer Form (broker) | HIN must exactly match the name on the grant. |
| Issuer-sponsored shares (SRN) | • Registry “Transmission Application” • Probate copy • Certified ID | Each registry (Computershare, Link, Automic) has its own template. |
| Managed-fund units | • Fund manager transmission request • Probate copy • FATCA/CRS form | Units are usually re-issued under a new investor number. |
| Overseas shares | • Probate resealed or local equivalent • Medallion guarantee (US) • Foreign tax clearance | Allow 6–12 months; professional help often required. |
| Employee Share Plan holdings | • Probate copy • Employer/plan paperwork | Watch vesting deadlines—unexercised options may lapse. |
If the executor sells immediately, the broker completes the transfer and liquidates the holding; proceeds flow into the estate account for distribution.
Valuations and Record-Keeping
Executors should order a date-of-death holding statement or obtain historical price data for each security. Include any DRP allotments, demergers, or capital-return adjustments—errors here can inflate a future CGT bill.
Tip: Scan and store each valuation with the probate file; the ATO can ask for substantiation many years later.
Dividends Received During Administration
Dividends declared after death but before the holding is transmitted belong to the estate. The executor includes that income (and any imputation credits) in the estate tax return. Once the shares are registered to a beneficiary, future dividends are taxed at that beneficiary’s marginal rate.
GST and Transfer Duty—Usually Not an Issue
- GST does not apply to share transfers or sales.
- Queensland transfer (stamp) duty is not usually payable on marketable securities unless the company is “land-rich” (uncommon for ordinary portfolios). [2]
Overseas Investments: Extra Steps and Caution
Australian residents must declare worldwide gains. If you inherit US-listed shares:
- The US transfer agent typically requires IRS form W-8BEN and a Medallion signature guarantee.
- Executors often rely on the Australia–US Estate Tax Treaty to avoid US estate tax, but paperwork must be precise. [3]
Other jurisdictions (UK, Japan, Hong Kong) have their own probate reseal or small-estate affidavit processes—factor in extra time and costs.
Cost-Base Snapshot for Common Asset Types
| Asset Type | Standard Cost-Base Rule | Special Watch-outs |
|---|---|---|
| Post-1985 ASX shares | Original purchase price + brokerage | Add dividend-re-investment amounts to cost base. |
| Pre-1985 ASX shares | Market value at date of death | Obtain official price from share registry history service. |
| ETF units | Original purchase price + brokerage | Annual tax statements adjust cost base (AMIT regime). |
| Managed-fund units (pre-1985) | Market value at death | Capital distributions between death & transfer tweak base. |
| Foreign shares | Same rules, values converted to AUD | FX gains/losses form part of the CGT calculation. |
Frequently Asked Questions
Do I pay CGT immediately when I inherit?
No. CGT is deferred until you sell or otherwise dispose of the shares.
Can I move the shares into my existing CHESS account?
Yes. Submit an off-market transfer signed by the executor and attach certified probate.
What if I only have Letters of Administration?
Registries will accept Letters if they cover the full estate and clearly name the administrator.
We can’t find the SRN or broker details—what now?
Contact the main registries (Computershare, Link, Automic) with the deceased’s name and address. They can trace holdings once they sight probate.
Does cryptocurrency follow the same rules?
Broadly, yes: you inherit the cost base and CGT arises on disposal. However, securing private keys and verifying balances adds extra complexity.
Key Take-Aways
- Inheriting shares does not trigger immediate tax; CGT applies only on disposal.
- Record the correct cost base (original price or market value at death) to avoid future disputes.
- Share registries and brokers require certified probate, death certificates, and ID before processing a transfer.
- Dividends declared after death but before transmission belong to the estate, not the beneficiary.
- Overseas holdings demand extra paperwork—allow more time and consult professionals if necessary.
Sources / Citations
- Income Tax Assessment Act 1997 (Cth) s 128-15 — cost-base rules for inherited assets.
- Duties Act 2001 (Qld) pt 8 div 4 — exemptions for marketable securities passing under a will.
- Australian Taxation Office, “Guide to Capital Gains Tax 2025”, ch 12 (Inherited Assets).
- Computershare Investor Services, “Transmission Application — Deceased Estates” (form, 2025 ed.).
- Australian Securities Exchange, “ASX Settlement Operating Rules” cl 13.3.4 — deceased-holder transmissions.