How does the ATO treat a foreign property inheritance?

My mother, who never lived in Australia, died earlier this year in Italy, leaving no will. My four siblings and I are the heirs to her estate, and I am the only Australian, after migrating here in 1994. My question relates to the Australian tax treatment of a mountain farm my mother owned in Switzerland. It was never her principal residence. The farm was built by my Swiss grandfather in 1939, gifted to my Swiss father in 1963 and inherited by my mother upon his death in 1992.

Given that you would pay foreign tax, you should be entitled to a foreign income tax offset. Download the ATO form “If there is considerable money involved, apply to the ATO for free advice using the form “I have a couple of simple and probably stupid questions for you. However, I choose to ignore the old Mark Twain adage of keeping your mouth shut and will ask them anyway.

Each annual statement would give you the cost base of the units bought with reinvested money. Since 2017, the ATO has received data from fund managers that allows it to “pre-populate” that part of your tax return. I am the sole member of a superannuation fund in “pension” mode, containing $1.5 million in assets – all in shares and fixed interest. My son and I are directors of the corporate trustee. The taxable component is $1 million and the accrued capital gain is $130,000. What tax is involved when I expire and the assets are distributed to my adult children under the terms of my will?

If he distributes the money equally to, say, four children, each would receive $250,000 in taxable component and would be taxed 15 per cent, plus the Medicare Levy or $42,500.

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