Duties Act 2000

No duty is chargeable under this Chapter in respect of a transfer of dutiable property that is subject to a discretionary trust (the principal trust) to a beneficiary of the trust if—

the duty (if any) charged by this Act in respect of the dutiable transaction that resulted in the dutiable property becoming subject to the principal trust has been paid or the Commissioner is satisfied that the duty will be paid; and

the beneficiary—

was a beneficiary at the relevant time; or

became a beneficiary after the relevant time by reason of—

becoming a spouse or domestic partner of a beneficiary within a class of beneficiary described in the principal trust; or

becoming an adopted child or step child of, or being a lineal descendant of, a beneficiary within a class of beneficiary described in the principal trust; or

being an adopted child, step child or lineal descendant of a person referred to in sub‑subparagraph (A); and

the transfer is—

to the beneficiary absolutely; or

to the beneficiary as trustee of another trust of which all the beneficiaries are relevant beneficiaries; and

if—

the transfer is to the beneficiary absolutely; and

the beneficiary is a corporation—

the Commissioner is satisfied that the transfer is not part of a sale or other arrangement under which there exists any consideration for the transfer.

A reference in this section to dutiable property becoming or first becoming subject to a trust includes a reference to property from which that dutiable property was derived, by subdivision or consolidation of titles, becoming or first becoming subject to the trust at a time when the transferee was a beneficiary of the trust.

In this section—

in the event of the exercise of a power or discretion in favour of the person (whether or not that power is presently exercisable); or

in the event that a discretion conferred under the trust is not exercised;

is required to be determined by a person either in respect of the identity of the beneficiaries or the quantum of interest to be taken, or both; or

will occur in the event that a discretion conferred under the trust is not exercised; or

has occurred but under which the whole or any part of that capital will be divested from the person or persons in whom it is vested if a discretion conferred under the trust is exercised—

a natural person who—

was a beneficiary of that trust at the relevant time; or

became a beneficiary of that trust after the relevant time by reason of—

becoming a spouse or domestic partner of a beneficiary within a class of beneficiary described in the principal trust; or

becoming an adopted child or step child of, or being a lineal descendant of, a beneficiary within a class of beneficiary described in the principal trust; or

being an adopted child, step child or lineal descendant of a person referred to in sub-subparagraph (A); or

a corporation as trustee of a further trust, all the beneficiaries of which are persons referred to in paragraph (a);