Trust Deed Stamping in Australia: What It Is, Why It Matters & How to Get It Right
- Chirag@XperTax
- Aug 16
- 4 min read
Setting up a trust—especially a discretionary or family trust—is a popular strategy for asset protection, tax planning, and succession management. But one critical legal step is often overlooked: stamping the trust deed.
What Is Trust Deed Stamping?
Trust deed stamping is the process of paying stamp duty to a state revenue office when a trust is established. It legally validates the trust deed and ensures the trust is recognised by authorities such as the ATO, banks, and courts.
Why Is Stamping Important?
Confirms the legal existence of the trust
Ensures the deed is admissible in court
Allows the trust to open bank accounts, acquire property, and operate legally
Prevents penalties, interest charges, and compliance issues with the ATO
Rules & Requirements by State (2025)
State/Territory | Duty Payable | Deadline | Notes |
NSW | $750 + $20 per duplicate | 90 days | Required for most trusts |
VIC | $200 | 30 days | Required for discretionary trusts |
NT | $20 + $5 per duplicate | 60 days | Required for most trusts |
TAS | $50 | 90 days | Required unless trust involves only non-dutiable property |
QLD, WA, SA, ACT | None | No deadline | No duty unless dutiable property is involved |
How to Determine Where to Stamp the Deed
Key Rule: Place of Execution
The trust deed should be stamped in the state or territory where it was signed.
The place of execution is considered to be where each party was physically located when they signed.
This is because stamp duty is a state-based tax, and each jurisdiction has its own Duties Act and requirements.
Stamp duty on the establishment of a trust is almost always determined by the state in which the trust deed is signed. This is referred to as the place of settlement.
When Must a Trust Deed Be Stamped?
When a new trust is established
When a trust deed is amended (in some states)
When the trust involves dutiable property (e.g., land)
Consequences of Not Stamping a Trust Deed
Failing to stamp a trust deed can have serious legal, financial, and operational consequences. Here’s what can go wrong:
1. Legal Inadmissibility
An unstamped trust deed may be inadmissible in court, meaning it cannot be used as evidence in legal proceedings.
This can be critical in disputes involving beneficiaries, trustees, or third parties.
2. Banking and Financial Restrictions
Most banks and financial institutions require a stamped trust deed to open a trust account or approve loans.
Without stamping, the trust may be unable to transact or hold assets.
3. ATO Compliance Issues
The Australian Taxation Office (ATO) may question the validity of the trust, especially during audits.
This can lead to denial of tax benefits, penalties, or reclassification of income.
4. Penalties and Interest
Late stamping can attract penalties and interest charges, which vary by state.
In NSW, for example, failure to stamp within 90 days can result in daily interest accrual and fines.
5. Property Transaction Delays
If the trust intends to purchase property, an unstamped deed can delay settlement or cause contracts to fall through.
Some state revenue offices may refuse to process property transfers without a stamped deed.
6. Loss of Asset Protection
An unstamped deed may be challenged in court, undermining the trust’s ability to protect assets from creditors or legal claims.
Final Tips for Trust Deed Stamping
1. Stamp Promptly
Stamp the deed within the deadline set by the relevant state (e.g., 90 days in NSW, 30 days in VIC).
Use online portals like Revenue NSW or SRO VIC for faster processing.
2. Determine the Correct Jurisdiction
Identify the place of execution, especially where the settlor signed the deed.
If signed electronically, use the physical location of the signatories at the time of signing.
3. Use a Professional Stamping Agent
Your accountant or solicitor can handle stamping and ensure compliance.
They can also assist with lodging amendments or duplicate deeds.
4. Keep Records
Retain a copy of the stamped deed and the Duties Statement for the life of the trust.
These documents may be needed for audits, legal disputes, or financial transactions.
5. Review State Laws Regularly
Stamp duty laws can change. Always check with the state revenue office or a legal advisor before establishing or amending a trust.
Final Thoughts
Stamping a trust deed is more than a legal formality—it's a foundational step in ensuring your trust is valid, compliant, and fully operational. Whether you're establishing a family trust, managing assets, or planning for the future, getting the stamping process right can save you from costly delays, penalties, and legal complications.
At XperTax, we specialise in guiding individuals, families, and businesses through the complexities of trust structures and compliance. From trust setup to deed stamping and beyond, our team ensures your trust is built on a solid foundation.
Need help with trust deed stamping or trust establishment?
📞 Contact XperTax today and let’s make your trust work smarter for you. Reach out to us for expert advice on tax planning using the right trust structure.