NSW Stamp Duty Alert: Acknowledgment Of Trust

Revenue NSW has now published its long-awaited Revenue Ruling on declarations and acknowledgments of trust in light of the 19 May 2022 stamp duty reforms (see our notes on those reforms here). Although housed in the longstanding Revenue Ruling DUT031 Declaration of trust in an agreement for sale, that ruling now has implications much broader than its title.

Usefully, the Ruling provides some clarity on wording which will and will not be considered to be a dutiable acknowledgement of trust, and illustrates some key areas which will be the focus of Revenue NSW.

It is important to keep in mind that an acknowledgment of trust issue can arise whenever trustees and custodians are involved, so it is critical that professional trustees / custodians, and those relying on their services, are aware of the changes and the scenarios which could expose the trust fund to an unnecessary stamp duty expense.