Terminal Illness – tax aspects to consider Read this in conjunction with my Legal Tip 133: Terminal Illness – Legal Aspects to Consider Legal Tip 133: Terminal Illness – Legal Aspects to Consider Some of the things to consider when suffering a terminal illness - from a tax perspective Capital Losses These are lost at death so any benefit off offsetting capital gains may not be available. It may be worthwhile considering whether to sell CGT pregnant assets now to use up the loss. Capital Gains Tax It may be advantageous to change your main residence to the investment property with the biggest gain as your main residence at death can be exempt from CGT for those inheriting it. Superannuation Super may be taken out tax free where there is a terminal illness. Depending on your circumstances dying and leaving superannuation benefits could see beneficiaries being taxed on part of your death benefits later. Charitable Gifts It may work out more tax effective if you give money to family and have them make a charitable gift so that they can claim the tax deduction. Tax Forgiveness The Commissioner of Tax has the power to forgive certain tax liabilities for serious hardship. S 340-5 Schedule 1 of Taxation Administration Act 1953 TAXATION ADMINISTRATION ACT 1953 - SCHEDULE 1 Collection and recovery of income tax and other liabilities For more on debt relief and tax see PS LA 2011/17 PS LA 2011/17 - Debt relief (As at 3 July 2014) HECS Stop paying that HECS debt. Any debt is not collected after a person dies – other than in the final tax return. Land Tax This will vary from state to state, but generally there are shrot term concessions for the former main residence of a deceased person.