Being recognized as a death benefit dependent for financial reasons requires more than merely receiving help with bills.

The PBR (1052403508367) was sought by the adult son of the deceased, who was also the legal representative of the estate of the deceased.

The deceased was survived by four adult children, including the applicant, who stated that he was financially supported by the deceased from the time he was a child, up until the time of his death.

In the facts presented to the tribunal, the applicant stated that whenever he and the deceased met over the past 10 years, typically a few times a year, the deceased gave the applicant money to help pay for bills, food and petrol.

The deceased once paid for a year-long gym membership for the applicant, and the applicant stated he relied on the deceased's financial support in order to stay on top of bills and afford his housing.

He further provided that he cannot provide any proof of the purported financial support, as the deceased used cash wherever possible and never transferred money to the applicant.

Based on ATO-held information, the applicant's income in recent years predominantly came from their employment.

In its ruling, the tribunal said the applicant was not a person who was a dependant of the deceased just before the deceased died.

Key Takeaways

1. Financial dependency is more than occasional help

   • The ATO and tribunals require that a person relies on the deceased for ordinary living expenses, not just for occasional gifts or small financial help.

   • Simply receiving cash for bills, food, petrol, or even a gym membership does not automatically create dependency.

2. Legal basis

   • ITAA 1997, s302-195(1)(d) applies to adult children who are not otherwise covered under paragraphs (a), (b), or (c) (spouse, child under 18, or interdependent relationship).

   • Dependency requires a relationship where one party relied on the other for ordinary living, not sporadic support.

3. Evidence matters

   • Financial support should be verifiable (bank transfers, receipts, formal records).

   • Cash gifts without documentation make it difficult to establish legal dependency.

4. Reliance, not generosity

   • As highlighted in Griffiths v Westernhagen [2008] and Edwards v Post super Pty Ltd [2007], courts emphasise that dependency involves real reliance, not just being given money.

   • A person who has sufficient income from employment or other sources is not considered financially dependent, even if the deceased occasionally helps.

5. Outcome of this PBR

   • The tribunal found the adult son was not a death benefits dependant of the deceased.

   • His occasional cash help did not satisfy the requirement of dependency for ordinary living.

Practical Implications

• Adult children must show ongoing financial reliance on the deceased to claim a death benefit.

• Documentation of support strengthens a claim.

• Receiving help for minor or irregular expenses is insufficient for tax or superannuation purposes.