A recent change to the stamp duty laws in NSW that disadvantaged the change of individual trustees for self-managed superannuation funds (SMSFs) has been overturned.
InvestorDaily had previously reported the stamp duty rules had been amended so the concessional duty of $50 that applied to transfers of property as a result of a change in individual SMSF trustees was no longer valid.
It meant, in these situations, that ad valorem stamp duty would be payable.
This adjustment was made effective from 1 July 2010.
It was rumoured this was an unexpected consequence of the amendment to the NSW Duties Act and the state government would be seeking to rectify the situation.
The remedy was delivered earlier this week when a further amendment to the act was made, returning the law to its original position.
This solution has been backdated to 1 July 2010.
However, even though the original position of the law has been restored, the new section (54 (2A)) of the NSW Duties Act still imposes a requirement for newly appointed SMSF trustees to prove their appointment has not been detrimental to any of the pre-existing benefits of any of the members of the fund.
The legislative backflip means a review of SMSF trustees' structure, that is, individuals compared to corporate trustees, in regard to NSW stamp duty benefits is no longer necessarily needed.
