Taxing inheritance transferred from wealthy people after they die could reduce inequality in Australia, Anglicare has argued.
Australia is in the minority of major economies that don’t tax wealth people receive from others who have died, but some not-for-profits argue it’s time the government considered doing it.
An inheritance tax would “provide a fairer system of wealth distribution, preventing undue concentrations of wealth within a limited segment of society”, Anglicare Australia has argued in a new report.
Separately, think tank Think Forward, which advocates for intergenerational fairness, has called this week for politicians to “tax wealth, not work” in order for young people to get fairer access to opportunities.
Australia used to have state and federal inheritance taxes but they were abolished in the late 1970s as they were seen as unpopular with voters.
Australia’s major wealth transfer
Australians are set to inherit an estimated $3.5 trillion over the next 20 years, in the greatest wealth transfer in the nation’s history.
On average, each recipient is expected to inherit around $320,000.
Australia’s four million baby boomers, generally considered to be those born between 1946 and 1964, are estimated to hold around $4.9 trillion in wealth, according to an analysis by market research company CoreData.