It Depends – Is there duty payable on the issue of additional units in a unit trust?

In this edition of ‘It depends’, associate Sacha Robinson talks about whether transfer duty is payable on the issue of additional units in a unit trust.

Video transcript

Welcome to the latest edition of It Depends. Today we will be talking about whether transfer duty is payable on the issue of additional units in a unit trust.

How do you issue additional units in a unit trust?

It depends. The trust deed for the unit trust will usually set out the process for issuing additional units in the unit trust.

Is there duty payable when additional units are issued in a unit trust?

It depends. There are a number of factors to consider, including in what states the trust owns assets, what those assets are and to whom and in what proportions the additional units are proposed to be issued.

When is duty payable?

In Queensland, duty may be payable on a trust acquisition, which includes an issue of additional units in a unit trust where that unit trust owns dutiable property in Queensland.

When is no duty payable?

In Queensland, one circumstance where duty is not payable is where the units are issued proportionately to the existing unit holdings of the current unit holders. This means that no trust acquisition or surrender has occurred, and the issue is not dutiable.

What should I do next?

Please contact me or a member of our team if you would like any further advice on issuing units in a unit trust.