Duties: A Matter for Trusts & Option Fees

Another change as a result of the State Revenue & Fines Legislation Amendment (Miscellaneous) Act 2022 is the duty payable where there is a change in beneficial ownership of dutiable property.

Making a change in the beneficial interest in property such as the granting of an option or by changing the proportion of interests of beneficiaries in a trust is likely to now attract a duty.  Moving forward a beneficiary receiving an interest from another beneficiary will be liable to pay duty on the value of the interest transferred, being the change in the beneficial ownership of that portion of the property.

In relation to the grant of a put option and/or call option over a dutiable property (such as an interest in land), will also result in a change in what is termed ‘beneficial ownership’. Practically, a duty becomes payable on any option fee paid for a put and/or call option entered into from the 19 May 2022.  Be aware that duty paid on the option fee is not credited towards the duty payable when the option is exercised nor is a refund issued for any duty paid if the call option is not exercised.