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In this edition of ‘It depends’, senior associate Tom
Walrut talks about whether you need to pay stamp duty on a change
of trustee and what circumstances you need to look out for.
Hi and welcome to today’s It depends. Today we’re going
to be talking about stamp duty and stamp duty on the change of a
Do I pay stamp duty on a change of trustee?
The first question is, is there stamp duty on the change of
trustee and well, it depends. And it depends on a multitude of
circumstances. The main ones being firstly, does your trust
actually earn any dutiable property and we talk about dutiable
property here in Queensland, we talk about things like land,
Queensland business assets, interests in land and also trust
interests as well.
What circumstances do I need to look out for?
So, the second question is what type of trust are we dealing
with? Is it a unit trust? Is it a family discretionary trust? Is it
a super fund? And then the third one that we have to work through
is the background and the circumstances relating to the trust and
how the trust has been operated to date to see if there’s
anything which affects whether or not we have to pay stamp duty.
So, when we’re looking at some examples of that, things to look
out for are if there’s been any trust acquisitions or changes
in the interests of the trust, particularly for dealing with unit
trusts on which stamp duty has never been paid. If stamp duty has
never been paid, that’s going to stop you getting the change of
trustee exemption on the change of trustee. The other ones,
obviously, are if you’ve got a family discretionary trust,
whether or not there have been any variations, which again, trigger
a trust acquisition or a trust surrender and on which stamp duty
has never been paid. A third and final point is also to look out
for where the arrangement which we’re implementing as part of
the change of trustee is part of a broader arrangement changing the
rights and entitlements of any of the beneficiaries in the trust.
If those circumstances are present, then you might not be entitled
to your exemption from stamp duty for the change of trustee.
But as always, if you do have a change of trustee that
you’re looking to get the duty exemption on, please do feel
free to give us a call. We’ve got a very large friendly team
here that’s happy to talk at any time about these things.
Cooper Grace Ward is a leading Australian law firm based in
This publication is for information only and is not legal
advice. You should obtain advice that is specific to your
circumstances and not rely on this publication as legal advice. If
there are any issues you would like us to advise you on arising
from this publication, please contact Cooper Grace Ward
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