NSW Imposes Stamp Duty Relief for SMSFs

New South Wales is imposing stamp duty relief for self managed superannuation funds as part of the changes to the NSW Duties Act of 1997. 

The amended ruling will be applied to section 62A, which now states that nominal stamp duty (valued at its lowest at $50) can be applied to an SMSF fund in the event of a property transfer. 

The old ruling used to require for trustees to prepare a notice of compliance that is issued by the Australian Taxation Office (ATO). This process, however, can take some time or may be until the first annual return. The amendments will now qualify newly established SMSFs for stamp duty concessions and proceed with the transfer. 

The trustees, however, must comply with the ATO’s conditions and requirements when incurring stamp duty liability and if the trustee doesn’t meet these requirements, the state has the right to impose higher duties. 

Additionally, the NSW Land Tax Management Act 1956 has also been amended to entitle SMSFs ‘tax zero-rate threshold.’ 

The changes were given royal assent last April 11 through the State Revenue Legislation Amendment Act 2012.