QLD Date of effective ownership verse legal structures- can one apply for transfer of property from trust to personal name earlier than the current date

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7 September 2020
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I left Australia some 30 years ago and recently returned. During my period away I was recommended to use a trust to purchase a property and during the whole time living away continued to finance the property and pay all its bills. Some rentals were earned but much less than the payments.



This was intended to be my primary place of residence in Australia and my family and I will be moving back into it.



My question relates to use of trusts and effective ownership.



My desire is to have the property in my name- as effectively been there since purchased. Is it possible of deeming the property under my personal name and enacting a property transfer at a much earlier time than now? How far back can this be done?



There would be no difference on tax or other structures due to this proposed change.
 

Rob Legat - SBPL

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The answer is possibly yes, it’s not something I can confirm off the top of my head. However, unless you have compelling reason to do so I would suggest there’s a very good reason not to. Transferring the property out of the trust will trigger a transfer duty event as at the date of transfer. You will find that you’d need to pay the relevant amount of duty applicable at the transfer date, based on the property’s value (which you will need to establish, given the relationship with the transferor), and then unpaid tax interest for the period from 30 days after the transfer event to the date of payment of the duty.

That could be a little off as there’s been a change in legislation in the middle, so you’d need it considered under the old Act and the current Duties Act. Either way, I wouldn‘t expect a remission of penalties from the Commissioner.
 
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7 September 2020
2
0
1
The answer is possibly yes, it’s not something I can confirm off the top of my head. However, unless you have compelling reason to do so I would suggest there’s a very good reason not to. Transferring the property out of the trust will trigger a transfer duty event as at the date of transfer. You will find that you’d need to pay the relevant amount of duty applicable at the transfer date, based on the property’s value (which you will need to establish, given the relationship with the transferor), and then unpaid tax interest for the period from 30 days after the transfer event to the date of payment of the duty.

That could be a little off as there’s been a change in legislation in the middle, so you’d need it considered under the old Act and the current Duties Act. Either way, I wouldn‘t expect a remission of penalties from the Commissioner.
thanks for the follow up