Estate Duty Assessment Act 1947

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ESTATE DUTY ASSESSMENT.

No. 16 of 1947.

An Act to amend the Estate Duty Assessment Act 1914–1942.

[Assented to 3rd June, 1947.]

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation

1.—(1.) This Act may be cited as the Estate Duty Assessment Act 1947.

(2.) The Estate Duty Assessment Act 1914–1942 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Estate Duty Assessment Act 1914–1947.

Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Duty on estates.

3. Section eight of the Principal Act is amended—

(a) by inserting in paragraph (a) of sub-section (4.), after the words “inter vivos”, the words “(not including any gift of property the value of which, together with the value of the property comprised in any other gifts made to the same person within three years before his decease, does not exceed Fifty pounds)”;

(b) by omitting from paragraph (c) of that sub-section the words “at any time before his decease” and inserting in their stead the words “before his decease, unless it was so surrendered more than three years before his decease”; and

“(6.) Where a gift of property has been liable to gift duty under the provisions of the Gift Duty Assessment Act 1941, or of that Act as amended at any time, and the property is also included in the estate of the donor under this Act, there shall be deducted from the total duty to which the estate is liable under this Act the lesser of the following sums:—

(a) the amount of gift duty paid or payable in respect of the gift; or

(b) the amount by which the estate duty payable apart from this sub-section in respect of the estate is increased by reason of the inclusion of the property in the estate.”.

Estates of persons dying on active service.

4. Section nine of the Principal Act is amended—

(a) by omitting from sub-section (1.) all the words before the word “there” and inserting in their stead the words “From the value of the estate of a person who is or has been a member of the naval, military or air forces of the Commonwealth, or of any other part of the King’s dominions, or of any Ally of His Majesty, during the state of war which commenced on the third day of September, One thousand nine hundred and thirty-nine, and who, during that state of war, or within three years after its termination, has died or dies on active service or as a result of injuries received or disease contracted on active service during that state of war”; and

(b) by omitting from sub-sections (2.) and (3.) the word “member” (wherever occurring) and inserting in its stead the word “person”.

5. Sections seventeen and eighteen of the Principal Act are repealed and the following section is inserted in their stead:—

Deductions from gross value of estate.

“17.—(1.) For the purpose of assessing the value for duty of the estate of a deceased person, there shall, subject to this section, be deducted from the gross value of the assessable estate—

(a) if the deceased person was domiciled in Australia at the time of his death, all debts due and owing by him at the time of his death;

(b) if the deceased person was not domiciled in Australia at the time of his death, all debts due and owing by him at the time of his death to persons resident in Australia, or contracted to be paid in Australia, or charged on property situate in Australia;

(c) Federal and State income taxes assessed in respect of income derived by him before the date of his death and Federal income taxes assessed in respect of any amount which is included in the assessable income of the trust estate of the deceased person in accordance with the provisions of section one hundred and one a of the Income Tax Assessment Act 1936–1941, or of that Act as amended at any time, and which is included in the estate for the purposes of this Act; and

(d) Federal and State land taxes assessed in respect of the ownership, on or before the date of his death, of land owned or deemed to be owned by him.

“(2.) No deduction under this section shall be allowed in respect of—

(a) provisional tax or provisional contribution payable in pursuance of the Income Tax Assessment Act 1936–1944, or of the Social Services Contribution Assessment Act 1945, or of either of those Acts as amended at any time; or

(b) taxes paid before the date of the death of the deceased person.”.

Application of amendments.

6.—(1.) The amendments effected by paragraphs (a) and (b) of section three of this Act shall apply in relation to the estates of all persons dying after the commencement of this Act.

(2.) The amendment effected by paragraph (c) of section three of this Act shall apply to all assessments issued after the commencement of this Act.

(3.) The amendment effected by section four of this Act shall apply in relation to the estates of persons who have died or who die on or after the third day of September, One thousand nine hundred and thirty-nine.

(4.) The amendment effected by section five of this Act shall apply to all assessments, and all amendments of assessments, notice of which is or has been given on or after the twenty-seventh day of March, One thousand nine hundred and forty-seven:

Provided that that amendment shall not operate to prevent or affect the allowance of a deduction claimed before that date.

Overview

The Estate Duty Assessment Act 1947 was enacted to amend the Estate Duty Assessment Act 1914–1942, addressing issues related to estate duty assessments. This Act, which received Royal Assent on 3rd June 1947, was passed by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. It introduces specific amendments to the Principal Act, including changes to the valuation and assessment of estates, particularly concerning gifts and the estates of deceased persons who were on active service during wartime. The policy objective of these amendments is to provide more accurate and equitable assessments of estate duties, particularly for those who served during wartime and for gifts of property. The Act's amendments apply to estates of persons dying after its commencement, ensuring that the changes are retrospectively effective where appropriate.

Scope and Application

The Estate Duty Assessment Act 1947 amends the Estate Duty Assessment Act 1914–1942, and it applies to the estates of all persons dying after the Act comes into operation. This includes estates of individuals who were members of the naval, military, or air forces of the Commonwealth or its allies during the state of war that began on 3 September 1939 and who died on active service or as a result of injuries or disease contracted during that period. The Act governs the assessment of estate duty, including the deduction of certain debts, taxes, and gifts from the gross value of an estate. Notably, the Act provides specific relief for estates of deceased persons who were on active service during the war, allowing deductions that would not otherwise apply. The changes introduced by the Act affect all estates subject to duty, including those of persons who died or will die on or after 3 September 1939. Additionally, the Act repeals and replaces certain sections of the Principal Act, and the amendments apply to all assessments issued after the Act's commencement on 3 June 1947.

Key Provisions

The Estate Duty Assessment Act 1947 amends the Estate Duty Assessment Act 1914–1942, introducing several modifications to the duty on estates. Section 3(a) of the Act inserts an exemption for gifts of property, excluding those valued at Fifty pounds or less, when combined with other gifts made within three years prior to the deceased's death. Section 3(b) modifies the conditions under which a gift can be excluded from the estate, requiring it to have been surrendered more than three years before the deceased's death. Section 3(c) introduces a deduction for gift duty already paid if the property is also included in the estate, ensuring the estate is not doubly taxed. These amendments are applicable to estates of individuals who die after the Act's commencement. The Act imposes specific obligations on parties involved in estate assessments. For example, section 3(c) mandates that if a property was subject to gift duty under the Gift Duty Assessment Act 1941, the lesser of the gift duty paid or the increase in estate duty due to the property's inclusion must be deducted from the total estate duty. Furthermore, section 4 specifies that estates of persons who died on active service or as a result of injuries received during the Second World War are subject to particular deductions and exemptions. The Act also outlines the deductions that can be made from the gross value of the estate, such as debts, taxes, and contributions, as detailed in section 17. Breaches of the provisions within the Estate Duty Assessment Act 1947 may result in various consequences. While the Act does not explicitly detail penalties for non-compliance, it is reasonable to infer that breaches could be subject to the general legal consequences applicable to tax legislation in Australia. These could include fines, interest on unpaid duties, or legal action to recover the due amounts. Given the nature of the Act, non-compliance may also lead to administrative penalties imposed by the relevant tax authority. The maximum penalties, if applicable, would typically be aligned with those set out in the broader tax framework, but these specifics are not outlined within the Act itself.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Commencement Provisions; Repeal & Amendment; Offence Provisions

Interactions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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