When transfer duty applies to trusts

Trusts are legal arrangements where a person or company holds property for the benefit of someone else. There are many types of trusts, including discretionary family trusts, unit trusts and superannuation funds.

You will pay transfer duty on trust transactions involving dutiable property, including:

• creating or terminating a trust
• acquiring an interest as a beneficiary in a trust
• surrendering an interest as a beneficiary in a trust.

Generally, you need to complete a dutiable transaction statement (Form D2.2) and include it with the transaction and trust documents when lodging for transfer duty assessment.

You do not pay transfer duty and a stamp is not needed if you:

• create a trust (including a superannuation fund) by declaration or settlement of cash only
• vary only the general terms and conditions of a trust.

Also consider…

• Read about creating and terminating trusts.
• Learn about trust interest, acquisitions and surrenders.
• Find which trust transactions are exempt.