Stamp duty on transfer of units in a unit trust victoria

Is stamp duty applicable in a trust scheme? A declaration of trust over land attracts duty at the same rate as a land transfer. Please refer to current duty rates.

When you acquire an interest, such as shares or units , in a company or unit trust scheme that has land holdings in Victoria of $million or more (a landholder), you may be liable for duty at the general rate. You must notify us within days of your relevant acquisition in the landholder.

Unlike other jurisdictions such as NSW, Victoria no longer imposes stamp duty on transfers of shares in a company or units in a trust. Various States of Australia impose landholder duty (a type of stamp duty ) on the transfer of units or shares in a landholder entity. In Victoria , landholder duty can apply where a person makes a relevant acquisition in a unit trust or company that has landholdings in Victoria of more than $1M. The rights of unit holders are treated as if they are shares in the company. The issue, surrender and transfer of units within the scheme are not within the scope of stamp duty land tax.

Duty is levied on dutiable property transfers , and with unit trusts the property is actually the units , not the land owned by the trustee. If the units are on a register held in one state and the land in another the relevant legislation could be the state where the units are held and not the state where the land is held. Tax Tip 139: Abolition of Duty on transfers of.

Stamp duty in Victoria is a levy imposed on certain dutiable transactions, such as transfers of land. Rakmy Pty Ltd held land in Richmon Victoria. Therefore, stamp duty applies. As if by magic, it then began holding the land as trustee for the Rakmy Superannuation Fund (“Rakmy SMSF“).

In Rakmy’s defence the Rakmy SMSF owned 1 of the units in. The Court said Rakmy was wrong. The movement of property between trusts can trigger duty.

This is the case if there is a change in ‘underlying equitable interests’. This guide explains Victorian stamp duty , plus exemptions and concessions for first home buyers. In South Australia stamp duty is not payable on a transfer of real property from a trustee of a trust to a person who already has a defined beneficial interest in the property.

For example, a transfer of property from the trustee of a unit trust to the unit holder. But there are a couple of tricks you need to be aware of. In Victoria , in specie distributions of property from a trust to a beneficiary can be exempt from Victorian transfer duty.

The relevant duty exemption was recently overhauled by the State Taxation In some circumstances, the exemption has been extended. Transfer Duty imposed on the issuance of a unit in a unit trust where that unit trust holds no dutiable property, or any interests therein. Stamp duty is no longer a worry for first home buyers in Victoria if they’re looking at a home valued up to $60000.

The way it works for properties valued in the higher price range of $60000- $750is that concessions are offered on a sliding scale.

The transfer of shares in a company or units in a unit trust that is land-rich may trigger a liability to land- rich duty over and above any liability to marketable security duty. Further references Legislation. Under the law, you are required to pay stamp duty on trust deeds established in Victoria , with the exception of superannuation trust deeds. Stamp duty is the tax of a transaction on the transfer of a property. The amount of tax that needs to be paid varies according to the type and value of the transaction involved and the state or territory you’re buying in.

Unit Trust - non-fixed. Some buyers may qualify for a stamp duty concession or exemption. The assessment of duty under the Duties Act on an acquisition or issue of units in a unit trust in a more favourable outcome than the assessment of stamp duty under the Stamp Act.

The transfer or issue of units in trusts which do not own land in Western Australia are no longer subject to duty in Western Australia. This section deals with different types of trusts including SMSFs, discretionary trusts , unit trusts. Before a party is entitled to $stamp duty on the transfer , certain requirements must be met to the Chief Commissioner’s satisfaction (s(3)).

No stamp duty on transfer or listed or unlisted securities in Victoria. This does not apply to land-rich entities, look at unencumbered land value for a notional conveyance.