Australians inherited an estimated $150 billion last year, marking the start of what researchers describe as the largest intergenerational transfer of wealth in the nation’s history, with trillions of dollars expected to change hands over the coming decades.
A report by The Balance Sheet estimates inheritances have almost tripled since 2002, rising from about $55 billion to $150 billion in 2024. It says the transfer is expected to reach between $3.5 trillion by 2050, based on Productivity Commission modelling, and $5.4 trillion over the next 20 years under separate JBWere projections. The report notes the estimates are based on different methodologies and should not be directly compared.
Rather than helping younger Australians buy their first home, the report finds inheritances typically arrive much later in life. The average inheritance is about $125,000 and is received at a median age of 50, making it “a mid-life balance-sheet event” rather than a pathway into home ownership.
The report argues the way wealth is transferred may prove as important as the amount being passed on. It points to Productivity Commission research showing wealthier households receive larger inheritances in dollar terms, although transfers provide a much larger proportional boost to households with lower existing wealth. As a result, inheritances increase absolute wealth gaps while reducing some measures of relative inequality.
The average inheritance is about $125,000 and is received at a median age of 50, making it “a mid-life balance-sheet event” rather than a pathway into home ownership
Researchers say the transfer extends beyond formal inheritances. Financial assistance from the “bank of mum and dad”, early gifts for housing deposits and more than one million discretionary trusts all form part of the movement of family wealth. The report notes discretionary trusts have doubled in number over the past two decades and says about half of all trust distributions go to the top 0.4 per cent of income earners. It also highlights family businesses and farms as major sources of inherited wealth despite limited national data on succession.
The report says there were 188,000 deaths in 2025 and annual deaths are projected to exceed 200,000 within a decade, with each generation leaving behind larger estates than the one before
The report says Australia is unusual among advanced economies because it abolished death duties in 1979, leaving superannuation as the main exception. Benefits paid from superannuation to adult children are taxed at between 17 and 32 per cent, creating what the report describes as “the quiet death duty” that applies to super but not to other large assets such as the family home.
The transfer is expected to gather pace as Australia’s population ages. The report says there were 188,000 deaths in 2025 and annual deaths are projected to exceed 200,000 within a decade, with each generation leaving behind larger estates than the one before.
Its wider analysis shows Australians over the age of 65 now hold about $6 trillion, or 32 per cent of household wealth, up from around 20 per cent two decades ago. Household wealth overall stands at $19.2 trillion, with housing remaining the dominant asset on Australian balance sheets.
The report argues the next quarter century will be shaped by the interaction between inherited wealth and compulsory superannuation savings, with inheritance increasingly determining who owns Australia’s assets across generations.
Support Independent Community Journalism
Dear Reader,The Indian Sun exists for one reason: to tell stories that might otherwise go unheard.
We report on local councils, state politics, small businesses and cultural festivals. We focus on the Indian diaspora and the wider multicultural community with care, balance and accountability. We publish in print and online, send regular newsletters and produce video content. We also run media training programs to help community organisations share their own stories.
We operate independently.
Community journalism does not have the backing of large media corporations. Advertising revenue fluctuates. Platform algorithms change. Costs continue to rise. Yet the need for credible, grounded reporting in a multicultural Australia has never been greater.
When you support The Indian Sun, you support:
• Independent reporting on issues affecting migrant communities
• Coverage of local and state decisions that shape daily life
• A platform for small businesses and community groups
• Media training that builds skills within the community
• Journalism accountable to readers
We cannot cover everything, but we work to cover what matters.
If you value thoughtful reporting that reflects Australia’s diversity, we invite you to contribute. Every donation helps us maintain the quality and consistency of our work.
Please consider making a contribution today.
Thank you for your support.
The Indian Sun Team
