QLD duty changes

Recent changes to the QLD Duties Act 2001 will bring some joy and relief to SMSF Trustees who have entered into or are considering entering into limited recourse borrowing arrangements where the acquired property is QLD real estate.

The Duties Act has been amended to extend the duty concession on transfers of real estate between super trustees and custodians to include self managed superannuation funds where the property is required to be held by a custodian because of S67A of the SIS Act.

Before this amendment there was no express provision which dealt with the transfer of title from a holding trustee to the SMSF and there was a distinct possibility that the transfer of title from the holding trustee to the SMSF trustee may not be exempted from transfer duty.  This was a real issue as in limited recourse borrowing arrangements; once the debt has been repaid, the asset must be transferred from the holding trustee to the SMSF (or sold to a third party or the debt refinanced).

Now the Duties Act expressly provides that the transfer of title from the holding trustee to the SMSF will be exempt from duty.  

The change has been made by the Revenue Amendment and Trade and Investment Queensland Act 2013 (Act No 28 of 2013).  While the amendment act received Royal Assent on 12 June 2013, the particular amendments relating to the transfer of title to and from custodians applies from 26 October 2011.  The amendment act has amended s130A and s130B of the Duties Act 2001.