WA Duty Concession - $50 duty for in specie death benefits

Proposed amendments to the WA Duties Act will permit transfers of real estate from SMSFs to the Legal Personal Representative or dependants of a deceased member to be charged with nominal duty (ie $50) rather than normal duty rates.

Previously, this concession only applied where the real estate was transferred to a member of the fund and did not apply if the transfer occurred after the death of the member.

The concessional duty will apply where the deceased member was a member of the fund at the time the real estate first became part of the fund.  Additionally, the transfer of the real estate must constitute all or part of the payment of the death benefit of the deceased member.

The Bill has now been passed by the WA Parliament and awaits Royal Assent.  The operative provision of the Bill will amend s127 of the Duties Act 2008 retrospectively from 1 July 2008.  The Bill is likely to be styled “Revenue Laws Amendment Act (No 2) 2012”.

SMSF advisers should identify any real estate transfers from their clients SMSFs which have been stamped at normal rates to determine whether there is an entitlement to a refund.  Generally in these situations, the refund will be for 95% of the overpaid amount (as the revenue office will impose a processing fee).