It Depends – Is there duty payable on a transfer of units in a unit trust?

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

Video transcript

Welcome to today’s edition of It Depends. Today, we will be talking about whether there is duty payable on a transfer of units in a unit trust.

Is there duty payable on a transfer of units in a unit trust?

It depends. It depends on a couple of factors, such as where the unit trust owns assets and what those assets are. For example, if the unit trust owns dutiable property in Queensland, there will likely be duty payable on a transfer of units in that unit trust, because there has been a trust acquisition of a trust interest.

What is dutiable property?

In Queensland, dutiable property includes real property and also Queensland business assets. This means that if your unit trust runs a business in Queensland or owns property in Queensland, then it is likely there will be duty payable on a transfer of units in that trust.

How much duty will be payable?

It depends. In Queensland, duty will be determined in accordance with the dutiable value of the trust interest. The dutiable value of the trust interest is the higher of: the consideration paid for the units; and the amount calculated by applying the percentage of the trust interest being acquired or surrendered to the unencumbered value of the dutiable property held by the trust.

What should I do next?

If you are transferring units in a unit trust, you should always consider whether duty will be payable on the transfer of the units or if any exemptions apply. Please contact me or a member of our team if you would like to discuss.