Estate Duty Assessment Amendment Act 1978

Legislation au C2004A01821 Not in force Act

Select Document

ESTATE DUTY ASSESSMENT AMENDMENT ACT 1978

No. 22 of 1978

An Act to amend the Estate Duty Assessment Act 1914.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Estate Duty Assessment Amendment Act 1978.

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

Commencement

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

Interpretation

3. Section 3 of the Principal Act is amended—

(a) by omitting the definition of “Children” and substituting the following definition:

“‘Child’ or ‘Children’, in relation to a person, includes an adopted child, a step-child or an ex-nuptial child of that person;”;

(b) by inserting after the definition of “Gift inter vivos” the following definition:

“‘Member of the family’, in relation to a deceased person, means the widow or widower, a child, a grandchild, a parent or a grandparent of that person;”; and

“(2) For the purposes of the definition of ‘Member of the family’ in sub-section (1)—

(a) ‘grandparent’, in relation to a person, means a person of whom that person is the grandchild; and

(b) ‘parent’, in relation to a person, means a person of whom that person is the child,

and, for the purposes of that definition and the definition of ‘grandparent’ in this sub-section—

Duty on estates

4. (1) Section 8 of the Principal Act is amended by adding at the end of sub-section (1) “dying before 1 July 1979”.

(2) Section 8 of the Principal Act is amended by inserting in sub-paragraph (vi) of paragraph (b) of sub-section (5) “, The National Trust of Australia (Northern Teritory), National Trust of Australia (A.C.T.)” after “National Trust of Australia (Tasmania )”.

(3) Section 8 of the Principal Act is amended by inserting after sub-section (5) the following sub-section:

“(5a) Duty shall not be assessed or payable upon so much of the estate as passes by will, intestacy, gift inter vivos, settlement or right of survivorship to, or for the benefit of, a member or members of the family of the deceased person.”.

Deduction in respect of property passing to widow or widower

5. Section 8aaa of the Principal Act is repealed.

Returns to be lodged

6. (1) Section 10 of the Principal Act is amended by inserting after sub-section (1) the following sub-section:

“(1a) Sub-section (1) does not apply in relation to the estate of a person who dies on or after 1 July 1979.”.

(2) Section 10 of the Principal Act is amended—

(a) by omitting sub-section (3) and substituting the following sub-section:

“(3) Unless he is required by the Commissioner by notice in writing so to do, it shall not be necessary for the administrator to furnish a return in accordance with sub-section (1) in respect of an estate where—

(a) the whole of the estate passes to, or for the benefit of, a member or members of the family of the deceased person; or

(b) the value of the estate does not exceed $20,000.”; and

(b) by omitting from sub-section (5) the words “deductions (if any) allowable under sections 8aaa and 18a” and substituting “deduction (if any) allowable under section 18a”.

7. Section 18a of the Principal Act is repealed and the following section substituted:

Statutory exemption

“18a. (1) From the value of the estate there shall be deducted—

(a) in the case of an estate in relation to which Part IIIa applies—

(i) where the value of the estate does not exceed $24,000—a sum equal to the value of the estate; or

(ii) where the value of the estate exceeds $24,000—the sum of $24,000 decreased by $2 for every $8 by which that value exceeds $24,000; or

(b) in any other case—

(i) where the value of the estate does not exceed $20,000—a sum equal to the value of the estate; or

(ii) where the value of the estate exceeds $20,000—the sum of $20,000 decreased by $2 for every $8 by which that value exceeds $20,000,

and the balance remaining shall be the value for duty of the estate.

“(2) For the purposes of this section, ‘value of the estate’ means the value ascertained by deducting from the gross value of the estate liable to be assessed all the deductions allowable under this Act except the deduction allowable under this section.”.

Amendment of assessments

8. Section 20 of the Principal Act is amended by inserting after sub-section (6) the following sub-section:

“(6a) Nothing contained in this section shall prevent the amendment of an assessment, either to reduce or (except in the case of an assessment made before the commencement of this sub-section) to increase the duty payable in respect of an estate, in order to take account, for the purposes of this Act, of any assessment, or any amendment of an assessment, of probate or succession duties payable in relation to the estate under any State Act or of any refund or rebate of, or any alteration in the amount of, any such probate or succession duties payable in relation to the estate, but no amendment shall be made under this subsection after the expiration of 3 years from the date upon which duty became due and payable under the first-mentioned assessment.”.

Apportionment of duty among beneficiaries

9. Section 35 of the Principal Act is amended by omitting the proviso.

Release from liability for duty in cases of hardship

10. Section 48a of the Principal Act is amended by omitting from sub-section (1) “Department of the Treasury” and substituting “Department of Finance”.

Application of amendments, &c.

11. (1) The amendment made by sub-section 4(2) applies, and shall be deemed to have applied, to the estates of persons who died on or after—

(a) in the case of an estate or part of an estate devised or bequeathed or passing by gift inter vivos or settlement to or for the benefit of The National Trust of Australia (Northern Territory)—16 November 1976; or

(b) in the case of an estate or part of an estate devised or bequeathed or passing by gift inter vivos or settlement to or for the benefit of the National Trust of Australia (A.C.T.)—20 December 1976.

(2) The amendments made by section 3, sub-section 4(3), section 5, sub-section 6(2) and sections 7 and 9 apply, and shall be deemed to have applied, in relation to the estates of persons who died on or after 21 November 1977.

(3) The amendment made by section 10 does not affect the jurisdiction of a Board constituted under section 48a of the Principal Act in relation to any application made under that section the consideration of which had commenced before the commencement of this sub-section.

(4) Nothing in section 20 of the Principal Act prevents the amendment of an assessment made before the commencement of this Act for the purpose of giving effect to any of the amendments made by this Act.

Overview

The Estate Duty Assessment Amendment Act 1978 (Act No. 22 of 1978) was enacted to amend the Estate Duty Assessment Act 1914, addressing certain gaps and outdated definitions within estate duty legislation. The Act was passed by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia, aiming to modernise the estate duty framework and ensure it reflects contemporary familial relationships and tax obligations. The policy objective of the Act is to provide clarity and fairness in the administration of estate duties, particularly in the context of property transfers among family members and the integration of new entities like the National Trust of Australia in the Northern Territory and the Australian Capital Territory. The Act introduces amendments to definitions, duty assessments, exemptions, and the process for lodging returns, thereby enhancing the efficiency and relevance of estate duty laws in Australia.

Scope and Application

The Estate Duty Assessment Amendment Act 1978 amends the Estate Duty Assessment Act 1914 to introduce changes in the definition of family members for estate duty purposes, modifies the duty on estates, alters the requirements for returns to be lodged, and makes other adjustments to the assessment and exemption provisions. This Act applies to estates of individuals who died on or after specific dates, depending on the amendment, and is applicable at the Commonwealth level. It also includes amendments to the scope of entities eligible for certain exemptions, such as trusts benefiting from the National Trust of Australia. The Act specifies that certain provisions apply retroactively to estates of deceased persons who died before the Act's commencement, ensuring that the changes are effective from the relevant dates. Additionally, the Act allows for amendments to assessments to account for any probate or succession duties under state laws, subject to a three-year limitation from the date duty became payable. The application of these amendments is detailed within the Act, ensuring clarity on their jurisdictional and temporal reach.

Key Provisions

The Estate Duty Assessment Amendment Act 1978 (section 1) amends the Estate Duty Assessment Act 1914, referred to as the Principal Act. The Act defines certain terms such as "Child" (section 3(a)), which now includes adopted, step, and ex-nuptial children, and "Member of the family" (section 3(b)), which includes a deceased person's widow or widower, child, grandchild, parent, or grandparent. The Act also modifies the duty on estates by adding conditions and exemptions (section 4). Specifically, it introduces a time limit for duty assessment on estates of persons dying before 1 July 1979, includes additional National Trust entities, and exempts transfers to family members from duty (section 4(1), (2), (3)). The Act removes the deduction for property passing to a widow or widower (section 5) and alters the requirements for lodging returns, making them unnecessary in certain cases (section 6). The Estate Duty Assessment Amendment Act 1978 imposes several obligations on the parties it governs. Firstly, it mandates that returns need not be furnished for estates where the entire estate passes to family members or where the estate value does not exceed $20,000, unless specifically required by the Commissioner (section 6(3)). Secondly, it requires the deduction of specified amounts from the value of the estate based on the estate's total value and whether Part IIIa applies (section 7). Additionally, it allows for the amendment of assessments to account for other duties or refunds under State Acts, with a limitation of three years from when the duty became due and payable (section 8). Under the Estate Duty Assessment Amendment Act 1978, breaches of the legislative provisions can lead to various consequences. While the Act does not explicitly state civil or criminal penalties for non-compliance, the implications of failing to adhere to the requirements could result in legal disputes or financial repercussions. For instance, not lodging necessary returns when required by the Commissioner could lead to enforcement actions by the tax authorities. Similarly, incorrectly claiming exemptions or deductions could result in reassessments and additional duties owed. The Act's focus on duty amendments within a specific timeframe (section 8) suggests a structured approach to managing and rectifying compliance issues.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Repeal & Amendment; Enforcement Powers

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.

Legislation content

Overview

Scope and Application

Key Provisions

Legal classification tags

Interactions

Authorises

All Versions