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Managed investment schemes

Managed investment schemes

Duty on the transfer or declarations of trust on marketable securities (shares and units), including commercial fishery shares, is abolished from 1 July 2016.

Managed investment schemes attract duty for certain instruments and transfers.

A managed investment scheme under the Duties Act 1997 has the same meaning as under the Commonwealth Corporations Act 2001, and includes a public unit trust scheme.

How much duty is payable?

Duty of $50 is payable on the following instruments and transfers:

Responsible entity to custodian transfer

The transfer of dutiable property from a responsible entity of a managed scheme to a custodian or agent of the responsible entity who acts as a custodian or agent for the managed scheme where the transferor held the dutiable property.

When submitting the transfer to us, you must include a statutory declaration by the custodian or solicitor for the custodian stating:

  • that the transferor is the responsible entity of the managed scheme

  • that the transferee is holding the property as a custodian of the responsible entity for the managed scheme with ARSN.

Custodian to responsible entity transfer

The transfer of dutiable property from the custodian of the responsible entity of the managed scheme to the responsible entity.

Note: the Duties Act 1997 provides a concession for a vesting in New South Wales land by statute law in a responsible entity if the Chief Commissioner is satisfied that section 54A(2) would apply in respect of the dutiable property if it were a transfer.

When submitting the transfer with us, you must include a statutory declaration by the responsible entity stating:

  • that the transferor is the custodian of the transferee who is the responsible entity of the managed scheme with ARSN and the property was transferred to the custodian to hold in that capacity

  • that the transferee is the responsible entity of the managed scheme with ARSN.

New responsible entity transfer

A transfer of dutiable property because of the retirement of, or the appointment of a new, responsible entity, if the Chief Commissioner is satisfied the only beneficial interest acquired by a person in relation to the dutiable property as a result of the transfer is a beneficial interest acquired by the replacement or new responsible entity solely because of its appointment as responsible entity.

Note: the Duties Act 1997 provides a similar concession for a vesting of land in NSW by statute law in a responsible entity if the Chief Commissioner is satisfied that section 54(2),(2A),(3) or (3A) would apply.

When submitting the transfer to us, you must include:

  • the Deed of appointment/ retirement of the responsible entity or some evidence in writing which has the same effect, such as minutes of a meeting

  • a statutory declaration by the transferee stating:

    • the transferee is the new responsible entity of the managed scheme with ARSN

    • the interest acquired by the transferee in the scheme and a statement as to whether or not the interest was acquired solely as a consequence of the appointment or retirement as responsible entity of the managed scheme.

Instrument relating to a managed scheme

Duty is charged on an instrument that effects or is evidence of a dutiable transaction, which

  • amends, varies or replaces an instrument that establishes or governs a managed scheme, and includes a public unit trust scheme

  • does not transfer, or have the effect of transferring, any dutiable property to a person who does not hold units in the scheme

  • does not have the effect of reducing the number of persons who hold unit in the scheme.

When submitting the instrument with us, a copy or certified copy of the original stamped instrument that establishes the managed investment scheme and a statutory declaration from:

  • the responsible entity or the solicitor of the responsible entity

  • the manager or trustee or solicitor of a public unit trust scheme.

The statutory declaration must state:

  • that the instrument satisfies the above criteria

  • if the scheme is a registered managed investment scheme, the name and ARSN is the same as the scheme referred to in the instrument.

What is a responsible entity?

A responsible entity of a managed scheme is the company named in the Australian Securities and Investment Commission’s record of the scheme’s registration as the responsible entity or temporary entity of the scheme.

Last updated: 20 September 2016