Do adult children pay tax on inherited superannuation in Australia?

Adult children who are not tax dependants may pay tax on the taxable component of an inherited superannuation lump sum. Direct payments can attract up to 17% on the taxed element or 32% on the untaxed element, including Medicare levy where applicable. The tax-free component remains tax free. The outcome depends on dependency and how the benefit is paid, so seek financial and legal advice before making changes.

For related guidance, see what happens if your binding death benefit nomination has expired when you die?.