All Topics / Legal & Accounting / Double stamp duty – nominee (VIC)

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of jalexajjalexaj
    Member
    @jalexaj
    Join Date: 2011
    Post Count: 2
    July 8, 2011 - 1:53 am

    Hi all,

    I have a quick question I was hoping someone could answer.

    If a property is purchased and/or nominee, do you have to fall within the form 6A stat dec form exemptions to avoid paying double stamp duty?

    My situation is, we have bought a property with an and/or nominee clause and have subsequently set up a discretionary trust to be the subsequent purchaser.

    In the ‘transactions treated as a sub sale of land’ stat dec, it seems that the trust needs to be a fixed trust to fall within the double stamp duty exemption? The first purchaser’s wife is the director of the trust company and the first purchaser and his wife are the beneficiaries.

    Will we have to pay double stamp duty using this discretionary trust?

    Any help would be greatly appreciated!

    Jane

    Profile photo of ksherwellksherwell
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    @ksherwell
    Join Date: 2007
    Post Count: 125
    July 8, 2011 - 3:13 am

    I had the same question asked a year ago, by a family member.

    I'm looking forward to the answer as well

    Profile photo of MarJacMarJac
    Member
    @marjac
    Join Date: 2010
    Post Count: 71
    July 8, 2011 - 4:04 am

    Probably best to obtain professional advice from your solicitor and/or accountant

    You could also call the Vic State Revenue Office to clarify

    Profile photo of jalexajjalexaj
    Member
    @jalexaj
    Join Date: 2011
    Post Count: 2
    July 8, 2011 - 5:20 am

    Thanks MarJac. I called the SRO and the lady was adamant there was no double duty payable as long as there was no additional consideration, options or land development. I asked why the wording expressly stated fixed trust but she just kept saying there is no double duty so I’m going to go on her word.

    Any comments on the issue would be appreciated.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 11, 2011 - 5:28 am

    You are a brave man! Going on th word of a public servant!!

    Here is a recent VIC case where the purchasers signed and agreement before the trust was established.

    Scouller and Anor v Commissioner of State Revenue (Taxation) [2011] VCAT 998 (31 May 2011)

    http://www.austlii.edu.au/cgi-bin/sinodisp/au/cases/vic/VCAT/2011/998.html

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of colinnewlandcolinnewland
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    @colinnewland
    Join Date: 2006
    Post Count: 128
    July 12, 2011 - 10:37 am

    Get the STO to put it in WRITING.
    Failing that, see if you can have a new contract issued so as to avoid that pesky 2 x tax.

    Profile photo of Ashley CAshley C
    Participant
    @ashley-c
    Join Date: 2011
    Post Count: 36
    July 25, 2011 - 4:00 am

    Hi,

    Refer to http://www.sro.vic.gov.au/sro/SROnav.nsf/childdocs/-98E8944DC5A0C753CA2575D100047764-696A6B5AE91CEBBDCA2575D10004A84D-0A7301F952940470CA2575D1002B2D16/$file/publication-D2-05.pdf

    If there is no additional consideration then should not be double duty.

    It's quite common to purchase with a and/or nominee clause and then complete the acquisition with a non fixed trust.

    Ashley.

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