Inheritance statistics Australia

All the key facts and figures you need to know about inheritances in Australia.

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Tim Falk

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Jason Loewenthal

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Key takeaways

  • The average Australian inheritance is $125,000 received by individuals over 50.
  • Australia does not levy inheritance or estate taxes, unlike 24 OECD countries.
  • Many recipients (30%) invest their inheritance, while 28% prioritise mortgage repayment.

Quick stats

  • The average inheritance in Australia is $125,000 and the average recipient is over 50 years old.
  • Over the past 20 years, Australians have given almost $1.4 trillion in inheritances.
  • Baby boomers make up 21% of the population but own 49% of national wealth.
  • Baby boomers are expected to pass on an estimated $224 billion in inheritances per year by 2050.
  • Cerulli Associates projects that US$124 trillion in wealth will transfer through 2048, with about US$105 trillion going to heirs and US$18 trillion to charity. At the RBA rate of A$1 = US$0.7232 on 9 September 2026, US$124 trillion is roughly A$171 trillion.
  • Australia does not have any inheritance or estate taxes. 24 out of 38 OECD countries such as the US and UK have an inheritance tax.

The world is on the cusp of what's being called the "great wealth transfer". As wealthy baby boomers (people born between 1946 and 1964) reach the end of their lives, they're expected to pass on more than $100 trillion worth of assets to their children.

This wealth transfer is expected to have a sizeable economic impact in Australia too. So, what's the average inheritance in Australia, and how much is that expected to grow in the decades ahead? Let's look at some key inheritance statistics in Australia to find out.

The average inheritance in Australia

  • According to the Productivity Commission, the average inheritance in Australia is about $125,000 and average recipient is around 50 years old.
  • Australians have given almost $1.4 trillion in inheritances over the past 20 years – that's about $67 billion a year.
  • Australians passed on $107 billion in inheritances in 2018, this is approximately 6% of gross national income.
  • The annual value of wealth transfers has more than doubled since 2002, thanks to Australians accumulating more wealth.
  • According to a study by Perpetual, the 3 most popular ways to use an inheritance are to invest (30%), pay off the mortgage (28%) and share it with the family (19%).

Inheriting money from overseas

People in their 50s receive a larger share of inheritances

People in their 50s receive a larger share of inheritances
Age GroupProportion of inheritances (%)Average inheritance (thousands of 2018 dollars)
15–193.5%25
20–244.5%40
25–296.1%50
30–347.9%55
35–397.0%80
40–449.0%100
45–4910.2%120
50–5412.0%115
55–5912.5%155
60–6411.6%170
65–697.7%160
70–743.9%168
75–791.8%110
Source: Productivity Commission estimates using HILDA Restricted Release

How is inheritance taxed in Australia?

  • Inheritance and estate taxes were abolished in Australia in 1979 to prevent the outflow of capital.
  • Other developed countries that do not tax inheritance include Canada, Hong Kong, Malaysia, Mexico, New Zealand, Norway and Singapore.
  • 24 out of 38 OECD countries have an inheritance tax, including the US, UK, France, Japan and South Korea.
  • In Australia, tax obligations arise if you dispose of an inherited asset and trigger a capital gains tax event, or if you earn income from shares or property you inherit.
  • In 2019, among the 24 OECD countries that levy inheritance, estate and gift taxes, revenues from these taxes exceeded 1% of total taxation in only 4 countries (Belgium, France, Japan and South Korea).

Upcoming inheritance boom

  • The total amount of inheritances is projected to increase almost fourfold between 2020 and 2050.
  • Baby boomers are expected to pass on an estimated $224 billion per year by 2050.
  • It's estimated that $3.5 trillion in assets will be transferred to the next generation over the next 2 decades. That's an average of $175 billion per year.
  • Australia's ageing population, falling fertility rates and increased housing and super wealth are expected to drive the inheritance boom.
  • Property, superannuation and other investments will make up the bulk of assets handed down to the next generation.
  • Globally, this phenomenon is being referred to as the "great wealth transfer".
  • Cerulli Associates projects that US$124 trillion in wealth will transfer through 2048, with about US$105 trillion going to heirs and US$18 trillion to charity. At the RBA rate of A$1 = US$0.7232 on 9 September 2026, US$124 trillion is roughly A$171 trillion.

Wealth and income across households and generations

Wealth and income distribution

Wealth and income distribution
MeasureGen Y (25–34)Gen X (35–54)Baby boomers (55–74)Builders (75+)
Population (%)15%27%21%7%
Wealth (%)5%28%49%18%
  • The average full-time salary in Australia is about $108,400 a year, based on the ABS figure of $2,083.70 in average weekly ordinary time earnings for full-time adults in May 2026. The average gross annual household income is $121,108, from the ABS Household Income and Wealth release for 2019-20, the most recent available.
  • Analysis from McCrindle Research shows that the poorest 20% of households own just 1% of Australia's national private wealth, while the top 20% own 63%.
  • Gen Y makes up 15% of the population but owns just 5% of national wealth.
  • Baby boomers make up 21% of the population but own 49% of national wealth.
  • Gen X makes up 27% of the population and owns 28% of national wealth.
  • Builders, the generation born before the baby boomers, make up 7% of the population but own 18% of national wealth.

Suburbs where kids will inherit over $3 million

Research from Philanthropy Australia and Seer Data into intergenerational wealth transfer revealed the 10 Australian postcodes where the next generation are set to gain the largest inheritances. Here are the suburbs with the highest forecast average wealth transfer per household for the period 2021–2030.

  1. Rose Bay-Watsons Bay, NSW: $3.75 million
  2. Toorak, Victoria: $3.30 million
  3. Lindfield-Roseville, NSW: $3.29 million
  4. Wahroonga (east) – Warrawee, NSW: $3.29 million
  5. West Pennant Hills, NSW: $3.24 million
  6. St Ives, NSW: $3.20 million
  7. Woollahra, NSW: $3.20 million
  8. Glenhaven, NSW: $3.09 million
  9. Brighton, Victoria: $3.08 million
  10. Gordon-Killara, NSW: $3.08 million

Average inheritance by country (AUD)

Average inheritance by country · dw:o1WT6

Average inheritance by country · dw:o1WT6
CountriesAverage Inheritance
Switzerland$294,199
Australia$125,000
Canada$89,988
Spain$63,336
Germany$48,256
Ireland$48,256
United States$30,593
United Kingdom$5,737
  • Between 2016 and 2019, the average inheritance in the US was US$46,200, or about A$63,900 at the RBA rate of A$1 = US$0.7232 on 9 September 2026.
  • The median inheritance amount in the UK between July 2014 and June 2016 was £11,000, or about A$20,600 at the RBA rate of A$1 = 0.5336 British pounds on 9 September 2026.
  • Across 16 OECD countries, the average inheritance or gift received by the poorest households ranged from US$295 (Latvia) to $US11,052 (Belgium). For the wealthiest households, the average inheritance or gift ranged from US$30,441 in Hungary to US$525,879 in Austria.
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To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.
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Tim Falk is a writer for Finder, writing across a diverse range of topics. Over the course of his 20-year writing career, Tim has reported on everything from travel and personal finance to pets and TV soap operas. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

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