Calls for Australia to Introduce Inheritance Tax

There have been calls for Australia to follow the example of other OECD countries such as the UK and the USA and introduce a system of inheritance tax, reports the Sydney Morning Herald.

The OECD had initially made the suggestion as part of its two-year Economic Survey of Australia, but had qualified it by pointing out that people would be likely to try and avoid paying such a tax by transferring wealth before they die.

However, chairman of the Community Council for Australia, Tim Costello, has now echoed the call, saying that the fact that people might try to avoid paying inheritance tax is no reason not to introduce it.

According to Costello, an inheritance tax imposed on estates valued at over $5 million would only affect around 1% of the population. Exemptions could be built in for people who leave bequests to charity in their Wills, which in turn would encourage charitable giving.

"Two things are certain in life, death and taxes; if you have to pay taxes the best time is when you die; you are liquidating assets and you can still leave the bulk to your kids," said Costello.

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Source:

http://www.smh.com.au/business/the-economy/call-for-death-tax-on-super-rich-families-20160208-gmp3du