All state and territory jurisdictions seek to levy transfer duty on changes in beneficial interests in dutiable property, particularly changes in participation as beneficiaries of private trusts. This paper considers how the relevant provisions and case law affect the following issues involving trusts:
- Taxation by tracing to underlying property
- When are non-land assets taxed?
- The different types of trusts: unit trusts, discretionary trusts, hybrid trusts, bare trusts
- What transactions are dutiable:
- creation of trusts
- allotments/redemptions
- variations of rights
- settlements and resettlements
- What transactions are not dutiable:
- settlements and resettlements
- "unintentional" creation of a trust
- "restatement" of an existing trust
- no change in ownership of property.