Stamp duty for setting up a trust

Discussion in 'Legal Issues' started by Eug, 16th Aug, 2020.

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  1. Eug

    Eug Member

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    One of the things I have learnt recently was that not all States are created equal when it comes to the cost of stamp duty payable when setting up a trust. Attached is a screenshot of the stamp duty for each State. As you can see, NSW is the highest yet in QLD, WA, SA and ACT, there is nothing payable at all. So the question is, why would one ever setup a new trust where stamp duty is payable? Is there anything preventing a NSW/VIC/TAS/NT resident from setting up a new trust under the jurisdiction of QLD/WA/SA/ACT?
     

    Attached Files:

  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    a) the location of the parties to the deed, and
    b) the anti-avoidance provisions.

    It is not the jurisdiction of the trust that counts.
     
  3. Eug

    Eug Member

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    Thanks Terry. Would you be able to tell me more about what the anti-avoidance provision is about or a link to the actual part of the Act in relation to registration of trusts? I would like to educate myself about this.
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Its like the Commonwealth Part IVA in the tax act. NSW duties act has a division devoted to schemes to avoid stamp duty.
     
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  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The law prescribes a liability and penalties. Failure to have a deed stamped may mean actions in a court will be refused. The reason NSW Duty is $500 and QLD is $0 is state law.
    The trustee is liable on trust settlement. And to pay within XX days.

    Where is the deed settled ?
    What is the date the deed was settled ?
    Where is the trustee present ?

    Trust deed: section 58(2)