If you are intending on purchasing a residential property via an existing discretionary trust in Victoria or NSW after the 1st March 2020 be warned that you may be up for additional duty if your Trust Deed does not specifically exclude any potential foreign beneficiaries.


The Victorian State Revenue Office (SRO) and the New South Wales Office of State Revenue (OSR) have announced that from 1 March 2020 unless the trust deed contains an express beneficiary exclusion clause they will be deeming all discretionary trusts to be foreign trusts for the purposes of the foreign purchaser additional duty provisions.


This would mean you would have to pay an additional 8% in stamp duty costs on the transfer of the property. On an average home of $750,000 this would equate to an extra $60,000 payable!!


How can we help?


There are ways to avoid the foreign purchaser additional duty provisions.


If you are considering purchasing a residential property in your discretionary trust please contact our office, we can review your trust deed and if applicable arrange to either have the deed amended or establish a new trust.

WARNING – BUYING A PROPERTY VIA A DISCRETIONARY TRUST AFTER 1 MARCH 2020 MAY COST YOU AN EXTRA 8% IN STAMP DUTY