Don’t you just love dealing with different sets of State and Territories legislation when dealing with property. I recently went through a whole strategy with a client before they told me that the property was in a different state and I had to start again as the rules were different in that state.
As someone who highly recommends the use of a Corporate Trustee for SMSFs I thought it would be handy to provide a guide to the various state and territory stamp duty provisions when changing trustees.
The following tables set out the contact details for the stamp duty offices and provisions of the relevant legislation in each State and Territory. Please make sure to check that they are still current with your legal and tax advisers before changing trustees. I remind you yet again that this is General Information only.
In summary the amount of duty payable on the appointment of a new trustee and resignation of a current trustee is:
NSW: Duty of $50 payable
VIC: No duty payable
WA: Duty of $20 payable
SA: No duty payable
QLD: No duty payable
TAS: Duty of $50 payable
ACT: Duty of $20 payable
NT: No duty payable
DETAIL
| NSW | Change of trustees | |
| Duty payable | $50 | |
| Relevant provisions | Section 54 (2A) NSW Duties Act 1997 | |
| General description of legislation | Duty is charged in respect of a transfer of dutiable property to a trustee of a self managed superannuation fund as a consequence of the retirement of a trustee or the appointment of a new trustee. | |
| Documentation | No form required. Cover letter including background to the transaction and return address.Client identification required: Individuals – certified copy of document proving date of birth. Companies – ABN/ACN | |
| Legislation | Duties Act 1997 (NSW) | |
| Legislation website | http://www.osr.nsw.gov.au | |
| Office | Office of State Revenue | |
| Website | http://www.osr.nsw.gov.au | |
| VIC | Change of trustees |
| Duty payable | Not dutiable |
| Relevant provisions | Section 33 Vic Duties Act 2000 |
| General description of legislation | No duty is chargeable in respect of a transfer of dutiable property to a trustee of a complying super fund solely because of the retirement of a trustee or the appointment of a new trustee. |
| Documentation | Refer to ‘Evidentiary Requirements for Dutiable and Exempt Transactions’ on SRO Website. |
| Legislation | Duties Act 2000 (VIC) |
| Legislation website | http://www.legislation.vic.gov.au |
| Office | State Revenue Office (SRO) |
| Website | http://www.sro.vic.gov.au |
| WA | Change in trustees | |
| Duty payable | $20 | |
| Relevant provisions | Section 119 WA Duties Act 2008 | |
| General description of legislation | Nominal duty is chargeable on a transfer of dutiable property to a trustee as a consequence of the retirement of a trustee or the appointment of a new trustee (if the transfer does not confer an interest in trust property to any other person to the detriment of the beneficial interest of any person). | |
| Documentation | Refer to ‘Duties Information Requirements’ – change of trustee. | |
| Legislation | Duties Act 2008 | |
| Legislation website | http://www.slp.wa.gov.au/legislation/statutes.nsf/default.html | |
| Office | Office of State Revenue | |
| Website | http://www.finance.wa.gov.au/cms/section.aspx?id=209 | |
| SA | Change in trustees | |
| Duty payable | Not dutiable | |
| Relevant provisions | Section 71(5)(d) SA Duties Act 1923 | |
| General description of legislation | A conveyance of property for the purpose of effecting the retirement of a trustee or the appointment of a new trustee is exempt from duty, where the beneficial interest of any beneficiaries of the trust has not changed. | |
| Documentation | Application for Opinion form and document that conveys land to new trustee (is stamped as exempt). | |
| Legislation | Stamp Duties Act 1923 (SA) | |
| Legislation website | http://www.revenuesa.sa.gov.au/services-and-information/legislation.html | |
| Office | Revenue SA | |
| Website | http://www.revenuesa.sa.gov.au | |
| QLD | Change of trustees | |
| Duty payable | Not dutiable | |
| Relevant provisions | Section 117 | |
| General description of legislation | Transfer duty is not imposed on a dutiable transaction for the sole purpose of giving effect to a change of trustee (where the interests of beneficiaries do not change and transfer duty has been paid on all trust acquisitions for which transfer duty is imposed for the trust before the transaction). | |
| Documentation | Must be stamped. Lodgement form and statutory declaration required. | |
| Legislation | Duties Act 2001 (QLD) | |
| Legislation website | http://www.legislation.qld.gov.au/OQPChome.htm | |
| Office | Office of State Revenue | |
| Website | http://www.osr.qld.gov.au/duties/index.shtml | |
| TAS | Change in trustees | |
| Duty payable | $50 | |
| Relevant provisions | Section 37 TAS Duties Act 2001 | |
| General description of legislation | Duty of $50 is charged in respect of a transfer of dutiable property to a special trustee as a consequence of the retirement of a trustee or the appointment of a new trustee. Special trustee includes the trustees of a superannuation fund. | |
| Documentation | See ‘Documentary Evidence Requirements Guideline’ | |
| Legislation | Duties Act 2001 (TAS) | |
| Legislation website | http://www.thelaw.tas.gov.au | |
| Office | State Revenue Office | |
| Website | http://www.sro.tas.gov.au | |
| ACT | Change in trustees | |
| Duty payable | $20 | |
| Relevant provisions | Section 54(4) | |
| General description of legislation | Nominal duty is charged for the transfer of dutiable property to a person as a consequence of the retirement of a trustee or the appointment of a new trustee for a self managed superannuation fund. | |
| Documentation | Conveyance lodgement form Memorandum of transfer – Form52T Change of trustee deed Evidence that the property was purchased by the fund | |
| Legislation | Duties Act 1999 (ACT) | |
| Legislation website | http://www.revenue.act.gov.au/legislation/ | |
| Office | ACT Revenue Office | |
| Website | http://www.revenue.act.gov.au | |
| NT | Change in trustees | |
| Duty payable | Not dutiable | |
| Relevant provisions | Schedule 2, Exemption 6 | |
| General description of legislation | A conveyance that is made solely for the purpose of effecting the appointment of a new trustee on the retirement of a trustee or as an additional trustee if – no beneficial interest passes in the property conveyed; and no change of beneficial interest occurs as a result of the transaction; and the property conveyed was acquired by the retiring trustee or existing trustee in the capacity of trustee by virtue of an instrument that was stamped or was exempt from duty.
(This rewritten stamp duty provision refers to ‘a discretionary trust’ however the application of the provision remains the same as Item 9A of the repealed Stamp duty Act – which referred to a trust.) |
|
| Documentation | Refer to ‘Stamp Duty Lodgement Guide’ | |
| Legislation | Stamp Duty Act (NT) | |
| Legislation website | http://www.treasury.nt.gov.au | |
| Office | Territory Revenue Office | |
| Website | http://www.treasury.nt.gov.au | |
IMPORTANT
This information is current as at the date of publication but may be subject to change. This article is general in nature and has been prepared without taking into account a potential your objectives, financial situation or needs. Before making a recommendation based on this article, seek personal legal and tax advice and consider its appropriateness based on the your objectives, financial situation and needs.
Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? Then why now contact me at our Castle Hill or Windsor office in Northwest Sydney to arrange a one on one consultation. Just click the Schedule Now button up on the left to find the appointment options.
Liam Shorte B.Bus SSA™ AFP
Financial Planner & SMSF Specialist Advisor™
Tel: 02 98941844, Mobile: 0413 936 299
PO Box 6002 BHBC, Baulkham Hills NSW 2153
5/15 Terminus St. Castle Hill NSW 2154
Corporate Authorised Representative of Viridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572
This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.
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Sharon
/ March 9, 2015Thank you for that very handy summary! Do you have something similar for when stamp duty is payable on Holding Trust deeds?
SMSF Coach - Liam Shorte
/ March 9, 2015Hi Sharon, Thank you for the good feedback. I am working on the Holding Trust Deed stamp duty requirements. The news from my initial research is NSW, WA and VIC look good as exemptions apply. ACT, SA, TAS QLD all looking bad. I will have an article ready soon.