Introduction
When establishing a trust in Australia, an important step, particularly when the trust is used to purchase assets including property, is having the trust deed stamped.
However, the requirements for stamping trust deeds vary significantly between each state with each jurisdiction having its own rules, deadlines and duties payable. Failing to comply with these requirements can result in penalties, interest and questions regarding the validity of the trust.
This article provides a general overview of the different trust deed stamping requirements throughout Australia.
New South Wales
In New South Wales, a trust deed must be stamped and duty assessed within 3 months of the trust being established. The deed will need to be stamped through Revenue NSW.
Duty payable on NSW trusts is $750.00.
Victoria
For trusts established in Victoria, stamp duty in the amount of $200.00 is payable and the trust must be stamped within 30 days of it being established.
However, if a trust deed involves dutiable property that is located outside of Victoria, the Deed cannot be stamped by the State Revenue Office of Victoria.
Queensland
Unlike Victoria and NSW, while a trust deed needs to be stamped in Queensland, it only needs to be stamped if the trust involves dutiable property such as land. It does not need to be stamped if the trust is used in relation to cash or non-dutiable property.
Additionally, even if the trust deed needs to be stamped because it involves dutiable property, there is no stamp duty payable.
There is also no specific time frame in which the trust deed needs to be stamped.
Tasmania
In Tasmania, a trust deed only needs to be stamped if dutiable property is involved. In this case, the trust deed must be lodged for stamping within 90 days of the trust’s establishment. The amount of duty payable is $20.00.
However, there is no duty payable for new trusts that are established over non-dutiable property.
Northern Territory
In the Northern Territory, duty is payable on a trust deed, regardless of the property type it deals with.
However, the duty payable is a small amount of $20.00.
The trust deed must be lodged for stamping within 60 days of its establishment.
Australian Capital Territory, Western Australia & South Australia
In the Australian Capital Territory, Western Australia and South Australia, trust deeds do not need to be stamped unless they involve dutiable property.
As such there is no duty payable (unless dutiable property is involved and there are no specific timeframes for stamping).
Conclusion
Given that each state and their relevant revenue authority are responsible for the stamping of trust deeds, it is important that you check the requirements of each state to ensure your deed is correctly lodged and stamped.
It must be noted that the stamping rules for superannuation trust deeds differ from other trust types and is not considered in this article.
The information in this article is for general purposes only and you should obtain professional advice relevant to your specific circumstances.
Get in touch
If you or someone you know wants more information or needs help or advice in relation to the stamping of trust deeds, please contact us.
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