Tax Tip 217: Declarations of Trust and Stamp Duty

Discussion in 'Accounting & Tax' started by Terry_w, 23rd Jun, 2019.

Join Australia's most dynamic and respected property investment community
  1. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,666
    Location:
    Australia wide
    Recently I have written about making a declaration of Trust

    Legal Tip 193: Declaration of Trust
    Legal Tip 193: Declaration of Trust

    and

    Tax Tip 192: Declarations of Trust and CGT Tax Tip 192: Declarations of Trust and CGT

    Now I want to point out that there can also be stamp duty consequences to this because making a declaration of trust is a ‘dutiable transaction’. If the declaration is made over non-dutiable property, such as shares in NSW, then there would generally be no duty, but if the declaration is made over land, as this is dutiable property any declaration of trust will trigger stamp duty.

    In NSW the relevant legislation is s 8(1)(b)(i) of the Duties Act 1997 (NSW). DUTIES ACT 1997 - SECT 8 Imposition of duty on certain transactions concerning dutiable property

    In QLD the relevant legislation is s 9(a)(h) of the Duties Act 2001 (QLD) DUTIES ACT 2001 - SECT 9 What is a dutiable transaction

    In VIC the relevant legislation is s 7(1)(b)(i) Duties Act 2000 (VIC) DUTIES ACT 2000 - SECT 7 Imposition of duty on certain transactions concerning dutiable property
     

Build Passive Income WITHOUT Dropping $15K On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia