Australia is the only western democracy in the world not to have some form of death duty. The USA, Canada, England, Scotland, Ireland and New Zealand all have inheritance taxes.
Until the 1970’s each state and territory in Australia had some form of death duty or inheritance tax. But then Joh Bjelke Peterson as premier of Queensland abolished them in that state, and every other state government soon followed suit to remain competitive.
All State and Federal Governments are desperately looking to raise revenue in these difficult economic times, and every recent review of our tax system suggests that some form of inheritance tax will be back on the table.