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Family trust exemption (s.118)

Family trust exemption (s.118) interactive help

This s.118 interactive tool will help you to determine if you should apply a family trust exemption to a transaction.

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Under section 118 of the Duties Act 2001, a trust acquisition or surrender in a family trust is exempt from duty.

Refer to the toolkit for guidance.

Answer the following questions to determine if an exemption applies to the transaction you are self assessing.

Is the transaction a transfer of dutiable property?

Dutiable property

Property that is involved in a dutiable transaction in Queensland.

When you buy or sell dutiable property, you’re likely to pay duty. This can include:

land in Queensland
a transferable site area
an existing right
a Queensland business asset
a chattel in Queensland.

Read section 10 of the Duties Act 2001 for more on property types.

Does the trust hold an interest in real estate, business assets or other dutiable property?

Dutiable property

Property that is involved in a dutiable transaction in Queensland.

When you buy or sell dutiable property, you’re likely to pay duty. This can include:

land in Queensland
a transferable site area
an existing right
a Queensland business asset
a chattel in Queensland.

Read section 10 of the Duties Act 2001 for more on property types.

Is a trust interest being acquired or surrendered by a trustee of a trust?

Is the trust established and maintained primarily for the benefit of the members of a particular family or a family company?

A family company is a corporation in which all the directors and shareholders are members of the particular family for which the trust is established and maintained.

Is the trust a discretionary trust?

Are all the primary beneficiaries members of the family or the family company?

Are the takers in default of an appointment for capital by the trustee members of the family or the family company?

The last taker in default can be a person decided under the Succession Act 1981 or a charitable institution.

Does the transaction add or remove the trust interest of a family member?

For example, is a family member being added as a beneficiary of a trust?

Are at least 90% of the trust interests held by members of the family or the family company?

Is a family member becoming or ceasing to be a member of a class of beneficiaries of the trust because of the birth or death of the member?

Is a person being added to or removed from a class of beneficiaries made up of the children, stepchildren or grandchildren of a named family member?

Not exempt

Based on the information that you have provided, the transaction is not exempt under section 118 of the Duties Act 2001.

This exemption only applies to the acquisition or surrender of an interest in a family trust.

Next steps

Duty must be assessed on the dutiable value of the property and the transfer duty rates will apply.

For audit purposes, you must keep:

copies of the documents, including a copy of the original trust deed and any subsequent amending deeds
financial statements for the trust and any associated entities
a completed dutiable transaction statement (Form D2.2).

You must keep all records for 5 years in accordance with section 118 of the Taxation Administration Act 2001.

Your file reference:

Client name:

Transaction number:

Name:

Date:

Non-dutiable transaction

Based on the information that you have provided, the transaction is not liable for duty and may be stamped as a non-dutiable transaction.

Your file reference:

Client name:

Name:

Date:

Not exempt

Based on the information that you have provided, the transaction is not exempt under section 118 of the Duties Act.

Next steps

Duty must be assessed on the dutiable value of the trust interest being acquired or surrendered. The transfer duty rates will apply.

For audit purposes, you must keep:

copies of the documents, including a copy of the original trust deed and any subsequent amending deeds
financial statements for the trust and any associated entities
a completed dutiable transaction statement (Form D2.2).

You must keep all records for 5 years in accordance with section 118 of the Taxation Administration Act 2001.

Your file reference:

Client name:

Transaction number:

Name:

Date:

Do not self assess

Based on the answers that you have provided, this transaction cannot be self assessed.

Next steps

Send the documents, copy of the trust deed and any subsequent amendments, financial statements and a completed dutiable transaction statement (Form D2.2) to:

Queensland Revenue Office
GPO Box 2593
Brisbane QLD 4001

Your file reference:

Client name:

Name:

Date:

Exempt

Based on the information that you have provided, the transaction is exempt under section 118 of the Duties Act.

Next steps

For audit purposes you must keep:

copies of the documents, including a copy of the original trust deed and any subsequent amending deeds
financial statements for the trust
a completed dutiable transaction statement (Form D2.2).

You must keep all records for 5 years in accordance with section 118 of the Taxation Administration Act 2001.

Your file reference:

Client name:

Transaction number:

Name:

Date:

Last updated: 29 November 2024

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Self assessors
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Public rulings and practice directions
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