Will my kids have to pay a ‘death tax’ on my super?

April 26, 2026 — 5:01am

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I have heard that as my super beneficiary is my legal personal representative (to my will, which is my two grown children) they will be charged “death tax” of 32 per cent as they are older than 18 and not financially dependent on me.

Is it true, that before my demise, if I move the money from super to my bank account, there will be no “death tax”?

With regards the first part of your questions, death benefits tax is 15 per cent plus Medicare on the taxable component of your super, which for most people is not the entire balance. The effective rate of tax paid is therefore typically less than this. Whether the super passes directly to your children, or gets to them via a will should make no difference.

You are correct in noting that this death benefits tax could be avoided by withdrawing your........

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