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Sections: s34(1)(a)

Lodgement category: Declaration of trust

Sub category: Custodian Trust

Circumstances/Transactions:

A declaration of trust made by an apparent purchaser in respect of identified dutiable property where: 

  • The trustee of a regulated superannuation fund (RSF) is undertaking a limited recourse loan pursuant to section 67A or 67B of the Superannuation Industry (Supervision) Act 1993;
  • The acquirable asset is being held on bare trust by the custodian for the trustee of the RSF; and 
  • Both the custodian and the RSF trustee are companies.
     

Evidence:

At the time of lodgement for duty assessment via Duties Online (DOL), the DOL user must sight the executed trust instrument by one of the following means:

  • having physical possession of the original or full copy of the executed trust instrument
  • having possession of a scanned full copy of the original executed trust instrument.

The declaration of trust must adhere to the following rules:

  • The loan is applied for the acquisition of a single acquirable asset including expenses incurred in connection with the borrowing or acquisition.
  • The acquirable asset is held on trust for the RSF trustee.
  • The RSF trustee has a right to acquire legal ownership for the acquirable asset by making one or more repayments after acquisition.
  • The lender’s rights are only secured against the relevant acquirable asset.

The DOL user must continue to maintain hard copy or electronic records, including a copy of the executed trust instrument and how the executed trust document was sighted.



Lodge before settlement through Duties Online

Last modified: 17 May 2024

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