A common question we’re asked is, “Do trust deeds need to be stamped?” The answer depends on where the trust has been established. Trusts established in New South Wales, Victoria or the Northern Territory (except for superannuation trusts) must be stamped by a state revenue office or a registered agent, such as Equil Advisory. A common misconception is that only property trust deeds need to be stamped.
Why Do Trust Deeds Need to Be Stamped?
You must pay stamp duty under applicable legislation in most states or territories where trusts are established. Failing to get a trust deed stamped in the timeframe required after the date of execution might result in interest charges. You also might not be able to conduct trust business with other parties, such as banks, because your trust has not been officially stamped.
Since stamp duty is a state tax, it differs in each state and territory. In some jurisdictions paying stamp duty is not required, but you might need to be lodged with the state’s revenue office to be marked that no duty is payable. To find out if your trust deed needs to be stamped, contact your state revenue office or consult an accountant or lawyer.
At Equil Advisory, we can assist you in determining stamping requirements.
Stamping Trust Deeds in Australian States and Territories
Here’s an overview of the types of trust deeds and how to meet the relevant stamping requirements.
Discretionary trust, family trust and unit trust deeds
The answer to the question “Do trust deeds need to be stamped in NSW?” is “yes”. InNSW, trust deed stamping is required within three months of executing the trust, and the stamp duty is $500.
In Victoria, you need to pay stamp duty on trust deeds established in that state within 30 days to the Victorian State Revenue Office (VSRO). This includes discretionary (family) trusts, discretionary trusts with excluded beneficiaries, and fixed and non-fixed unit trusts, but excludes superannuation trust deeds.
To stamp a trust deed in Victoria, it has to be executed in Victoria, signed and dated by all relevant parties, and not contain identified or dutiable property. The fee is $200.
In the Northern Territory,trust deeds need to be stamped within 60 days of the date of execution.
In Tasmania, trusts need to be stamped within three months of the date of execution, and the stamp duty is $20.
In theAustralian Capital Territory, South Australia, Queenslandand Western Australia, the stamping of trust deeds is not required, and they are not subject to stamp duty.
Stamping trust deeds for property
In NSW, under the Duties Act 1997, a nominal duty is required under certain circumstances for a dutiable trust. This includes the retirement of a trustee or the appointment of a new trustee. In these situations, Revenue NSW requires a variation trust, which is a stamped change of a trustee application relating to trust property in NSW.
In Victoria, duty is payable on a declaration of trust under the following conditions:
- Where is the property that is subject of the trust is a non-dutiable property – such as unidentifiable property or cash – a $200 duty is payable to the VSRO.
- Where the property that is subject to the trust is a dutiable property – such as land – general duty rates apply.
Bare trusts
A bare trust is when the trustee holds the property of and on behalf of the beneficiary. These are used for SMSF borrowing and are also known as asset acquisition trusts and debt instalment trusts. Any stamping and duty requirements depend on the state where the trust has been executed.
In New South Wales, the Declaration of Trust needs to be lodged through the Office of State Revenue (OSR) and the duty of $500 paid.
In Victoria, no duty is payable, but the deed needs to be lodged with the State Revenue Office (SRO).
The Northern Territory requires these trust deeds to be stamped, and the duty payable is $5.00.
In the other states, stamp duty is not payable for these trusts.
Trust Deed Stamping Service
If you’re wondering how to get a trust deed stamped in Victoria or are not sure about stamping trust deeds in NSW or other states, please contact us to discuss the requirements.
For trust deed stamping in NSW, we’re located in the Sydney CBD and are ready to assist you.
