When the trustee of your trust retires, or you appoint a new trustee, you usually only pay nominal stamp duty of $50. The Chief Commission of Stamp Duties looks at the transfer of property carefully to check that the transfer is not really giving someone new the benefit of the property.

The old rules required that the transfer was not part of a scheme that would detriment the beneficial interest, or potential beneficial interest, of anyone. 

The new rules introduced by the State Revenue Legislation Amendment Act 2017 (NSW) require, in addition, that the transfer is not part of a scheme to avoid duty and will not cause anyone to cease holding a beneficial interest, or potential beneficial interest, in that property. 

You should get legal and tax advice before changing a trustee. If the exemption is not available, you may have to pay stamp duty on the value of the property transferred. By way of example, a transfer of real estate valued at $1,000,000 incurs stamp duty of $40,490. The tax consequences may be even more significant.

Contact Peter McNamara for your legal advice before changing your trustee.