Superannuation fund exemption (s.119) toolkit

Under section 119 of the Duties Act 2001, an acquisition or surrender of a trust interest in a superannuation fund is exempt from transfer duty, but only for trust acquisitions or surrenders that provide superannuation benefits for the member. This exemption typically applies to transactions where a person:

• joins a fund
• increases their investment in the fund
• ends their membership in the fund.

The exemption also applies where the acquisition or surrender results from the trustee distributing benefits to the dependants or other beneficiaries of a deceased member.

The exemption does not apply to transfers of dutiable property out of the fund. For example, where a trustee transfers land (held for the superannuation fund) to a member, or a beneficiary of the member on the member’s death, it is a transfer of dutiable property and not a trust acquisition or surrender.

As a registered self assessor, if you determine that this exemption will apply to a transaction, you must self assess it in QRO Online.

Assessing a superannuation fund trust acquisition or surrender exemption

Use the section 119 superannuation fund interactive help to determine if you should apply this exemption to a transaction.

How to lodge online

You must complete all mandatory fields under each tab in QRO Online. Mandatory fields are marked with a red asterisk. There are some specific data entry requirements.

• Select Transfer—other than land as the Transaction class.
• Select Trust acquisition or trust surrender as the Type of dutiable transaction.
• Select Trust—dutiable property as the Type of dutiable property.
• Enter a detailed description of the transaction in the text field (e.g. Deed of variation removing Jane Black as a member of the Black Superannuation Fund).
• The transferors are the existing beneficiaries of the superannuation fund surrendering their interest or the departing beneficiaries.
• The transferee is the member becoming a beneficiary of the superannuation fund. If a beneficiary is being removed, enter the remaining beneficiaries.
• Answer Yes to the question: Is the consideration for this transaction less than the unencumbered value of the property included in this transaction?
• Enter the unencumbered value of 100% interest in property if known; if unknown, enter $0.00 (nil).
• Answer Yes to the question: Is an exemption being claimed?
• Select s.119 exemption acq/surr in superannuation fund from the Exemption type drop-down list.

Records you need to keep

For this type of transaction, you must keep:

• a completed dutiable transaction statement (Form D2.2)
• a copy of the original superannuation fund trust deed
• a copy of any subsequent amending deeds
• copies of any other superannuation documents.

Find out more about your record-keeping obligations.

Also consider…

• See the data entry standards for QRO Online.
• Refer to Chapter 2 Part 13 of the Duties Act for exemptions for transfer duty.
• Read the transfer duty rates or use the transfer duty calculator to work out a duty liability.
• See our endorsing examples for how to stamp documents for this exemption.
• Get help with QRO Online.
• View the list of approved transactions for self assessors.