While there is no ‘death tax’ in Australia, there can be tax payable by your non-dependants if they receive your superannuation death benefit on your death. This tax on super death benefits applies to the taxable component of your super.
Learn more about the tax payable on your super death benefits.
One of the ways to reduce this taxable component is to implement a recontribution strategy. In a nutshell, a recontribution strategy involves withdrawing some of your super and putting it back into your super account as a non-concessional contribution because this forms part of your tax-free component. Your non-dependants do not have to pay tax on the tax-free portion of your super death benefit.
Learn more about a recontribution strategy.
