Stamp duty on unit trust nsw

What is stamp duty in NSW? Does stamp duty still apply to trusts? The trustees have a duty to the beneficiaries, who are the ‘beneficial’ owners of the trust property. You are considered to be the owner of the interest in the trust if you are a beneficiary or a unit holder in a fixed or family unit trust.

Stamp duty is payable by the person declaring the trust. The duty payable is $5and it must be paid within three months of the date from which the trust deed is executed. You pay this duty to the NSW Government Office of State Revenue (OSR). If you fail to pay stamp duty on time, a penalty will apply.

The cost is $5plus $for every duplicate trust deed. For example, if you would like four copies of your trust deed stamped , the total cost of the stamp duty is $530. 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.

A liability for duty arises when the sale or transfer occurs. However, if the sale or transfer is effected by a written instrument, liability for duty arises when the instrument is first executed. The purchaser or transferee is liable to pay the duty. Stamp Duty NSW is payable within months of the date liability arises.

For example, in NSW and the ACT, stamp duty is payable if the incoming trustee is also a beneficiary of the trust and the trust holds dutiable property. NSW stamp duty on certain types of insurance. WHAT IS A SMALL BUSINESS? Revenue NSW has stated that: “You are a small business if you are an individual, partnership, company or trust that is carrying on a business, and the business has an aggregated turnover of less than $million. As such, stamp duty may still be payable on the transfer of shares in a private company or units in a unit trust , where the transfer involves a significant interest and where the company or unit trust (or its linked entities) has land holdings in NSW with a value of $million or more.

There are some exemptions for companies which hold rural land. Pursuant to Section 5 Duties Act , duty of $500. You may be liable for landholder duty when you acquire shares or units in a company or unit trust which owns land (‘landholder’). A landholder is a unit trust scheme or a private or a publicly listed company that holds land (‘landholdings’) in NSW with an unencumbered value of $million or more.

The abolition will bring the NSW duty regime into line with the Victorian duty regime where generally only land transfers, declarations of trusts and significant acquisitions of shares or units in NSW land holder entities will. ALERT – TRUSTS HOLDING RESIDENTIAL PROPERTY IN NSW MAY NEED TO CHANGE TRUST DEEDS BEFORE DECEMBER OR PAY FOREIGN SURCHARGES ON STAMP DUTY AND LAND TAX. It is immaterial whether or not the transaction is effected by a written instrument or by other means, including electronic means.

So, if you are changing the trustee of a trust which holds property in New South Wales or the ACT, then you should seek tax advice on any potential stamp duty liability. In NSW there is $5stamp duty levied on a trust that is set up with ‘unidentified property and non-dutiable property’, s 58. Do not forget to click Calculate button every time you update the options. In the ACT, QL SA and WA, trusts aren’t required to be stampe and are not subject to stamp duty.

In NSW trusts need to be stamped within months of execution, and the stamp duty is $500. In NT trusts need to be stamped within days of the execution of the trust, and stamp duty is $20. If the Queenslan South Australian or Western Australian ‘unit trust scheme’ duty provisions apply, then duty is calculated at conveyance duty rates (up to in Queenslan up to in South Australia and up to in Western Australia) by treating the transaction as a transfer of a proportionate beneficial interest in the trust property situated in the relevant jurisdiction.