Trust exemptions

Change of trustee

We will not charge transfer duty on a dutiable transaction that is for the sole purpose of giving effect to a change of trustee if:

• transfer duty has been paid on all property acquired by the trust before the transaction
  
  and
  
  
• the transaction is not part of an arrangement that involves changes to the rights or interests of a trust beneficiary or terminates the trust.

See section 117 of the Duties Act 2001 (the Act) for more information.

Particular vestings of dutiable property

We will not charge transfer duty on a dutiable transaction that is, or arises from, a vesting of dutiable property:

• on a statutory trust for sale or partition under the Property Law Act 1974, part 5

or

• in a receiver or trustee in bankruptcy or a retransfer of the property to the bankrupt on the bankrupt's discharge from bankruptcy.

See section 125 of the Act for more information.

Trust acquisition or surrender in family trust

We will not charge transfer duty on the acquisition or surrender of a trust interest if the Commissioner is satisfied that all of the below apply:

• the trust is a discretionary trust
• the trust is primarily for the benefit of the members of a particular family or family company
• the person acquiring or surrendering the trust interest
  • is a member of the family
  • will not benefit in the capacity of trustee from the transaction.

This means that duty will only be charged for trust acquisitions and surrenders for family discretionary trusts where a non–family member:

• becomes a taker in default
  
  or
  
  
• varies their trust interest.

Also, where the named class of beneficiaries comprises the children, stepchildren and grandchildren of a family member, we will not charge duty on trust acquisitions or surrenders (in a family trust) that result from a person becoming or ceasing to be a member of the named class of beneficiaries.

See section 118 of the Act for more information. See also definition of ‘member’ in Schedule 6 of the Act.

Trust acquisition or surrender in superannuation fund

We will not charge transfer duty on the acquisition or surrender of a trust interest:

• of a member in a superannuation fund if the sole purpose of the transaction is to provide superannuation benefits for the member

or

• if the transaction distributes a superannuation fund member's benefit on the member's death.

See section 119 of the Act for more information.

Trust transfers for people under legal disability

We will not charge duty on the transfer of property from a trustee to a trust beneficiary if the trust is created on behalf of a person under a legal disability as per the Public Trustee Act 1978. The surrender of a beneficiary’s trust interest as a result of the transfer will also be exempt from duty.

See section 126 of the Act for more information.