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Superannuation trust: section 62B

These are general guidelines for transactions involving a Declaration of Trust by Custodians pursuant to section 62B of the Duties Act. It also sets out exceptions where they are not able to be processed on EDR and must be submitted to us.

Section 62B, provides a concessional duty charge of $500 on a declaration of trust. It must be over dutiable property purchased or being purchased by a custodian (bare trustee), on behalf of a trustee of a self-managed superannuation fund (SMSF) and the conditions set out in section 62B must be met.

The declarations of trust are documented by trust deeds and are often referred to as:

  • bare trust deeds
  • custodian trust deeds
  • instalment warrants.

Exceptions

The following complex assessments must be lodged with Revenue NSW.

  • The declaration of trust is dated prior to 23 October 2014.
  • The purchaser on the contract is the trustee of the SMSF not the custodian.
  • The declaration of trust is not over dutiable property being purchased by a SMSF.
  • Finance has yet to be approved, for example: the property being purchased is off the plan.
  • The SMSF was not established before the contract date.

Need to know

The following information may assist the user when processing the assessment on EDR.

  • The provisions under section 62B apply to trust deeds executed on or after 23 October 2014.
  • For the provisions of 62B to apply, ad valorem duty must be paid for the acquisition of the property by the custodian or SMSF trustee or section 62A applied to that acquisition and the $500 fixed duty paid.
  • The purchase money for the acquisition of the property must be provided by the SMSF.
CSP system information
Date of executionDate of deed
Liable partyCustodian/bare trustee
Non-liable partySelf-managed superannuation fund trustee

Stamping

For information on how to stamp the documents refer to the Duties Notice of Assessment (NOA) and statement.

Evidentiary requirements

You are required to submit documents listed in the evidentiary requirements to support the assessment of a partition.  All documentation must be obtained before an assessment can be made.

Record keeping and audit

Pursuant to Part 8 Section 53 of the Taxation Administration Act 1996, EDR approval holders must retain records for a period of 5 years to confirm that the correct tax has been paid

This must include all documents listed in the evidentiary requirements, copies of all stamped documents and copies of any Duties Notice of Assessments issued.

Electronic Records – for audit purposes, we will accept electronic records. The records must be easy to access and read.

More information

For more information on declarations of trusts by custodians refer to: Section 62B, Duties Act 1997.