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Family trust exemption (s. 118) procedure

Follow this procedure to help you lodge a section 118 exemption claim using OSRconnect.

Use our interactive help first to see if this exemption applies to your transaction. Read our family trust exemption toolkit for more information.

Note: The fields marked with an asterisk (*) are mandatory.

On the Lodgement Obligations tab:

  1. Select Transfer Duty from the Create return/transaction drop-down list.
  2. Select Create to start the transaction.
  1. You can enter your own reference (optional).
  2. Select Transfer - other than land as the Transaction Class.
  3. Select Trust acquisition or trust surrender as the Type of dutiable transaction.
  4. Select Trust - dutiable property as the Type of dutiable property.
  5. Enter the Transaction/Document date using the calendar or text field (dd/mm/yyyy).
  6. Answer the question: Is there an agreement in writing?
    Select Yes if variations are made to the trust deed for changes in beneficiaries of the trust.
  7. If the previous answer is Yes, answer the question: Does this transaction also include a transfer(s) assessed under section 22? (Form 1 pursuant transfer).
    The answer will generally be No for acquisitions or surrenders of trust interests in a family trust.
  8. Answer the question (if applicable): Has duty been previously paid on this agreement?
    If the answer is Yes, complete the remaining questions.
  9. Click Next.

The Property section will display first. Make sure you complete this stage following our data entry standards.

  1. Enter a detailed description of the transaction.
  2. Enter the value of business goodwill and intellectual property. These amounts must be included as part of the consideration or unencumbered value.
  3. Answer the question: Does this transaction include real property?
  4. Enter a detailed description of the transaction in the text field.
    For example: Deed of variation removing Joe James as a beneficiary of the James Family Trust.
  5. Select Transferors from the Document details list.

The transferor is the member leaving the family trust. If no-one is leaving, enter the existing beneficiaries or trust details.

  1. Select the Transferor type from the drop-down list.
  2. Enter the transferor details.
  3. Click Add to register these details.

To add more transferors, repeat steps 17 to 19.

  1. Select Transferees from the Document details list.

The transferee is the family member becoming a beneficiary of the family trust. If a beneficiary is being removed, enter the remaining beneficiaries.

  1. Answer the question: Are any of the transferor/s and transferee/s related?
    The answer will generally be Yes for a section 118 exemption.
  2. Select the Transferee type from the drop-down list.
  3. Enter the transferee details.

You need to enter a date of birth for an individual.

  1. Enter the Interest acquired by the transferee as a fraction.
  2. Complete the transferee address details.
  3. Click Add to register these details.

To add more transferees, repeat steps 22 to 26.

  1. Click Next.
  1. Answer the question: Is the consideration less than the unencumbered value of the property included in this transaction?
  2. Enter the Consideration / Unencumbered value of ENTIRE property as nil ($0.00) for an exemption claim.
  3. Answer Yes to the question: Is an exemption being claimed?
  4. Select s. 118 Exemption Trust Acq/Surr in Family Trust from the Exemption type drop-down list.
  5. Answer the question: Does this transaction form part of an arrangement that includes other dutiable transactions (Section 30)?
  6. Click Next.

The duty is calculated as $0.00 for an exemption claim.

  1. Click Save to validate your data. The status message advises of any errors in the form.

A transaction number is created, and the transaction is saved in draft. (The transaction number will be displayed in a pop-up box that you can then close by clicking the X button.)

  1. Click Summary to review your data.
  2. Click Print for a hard copy.
  3. Click the X to close the summary.
  4. Click Next.
  1. Enter your full Name and contact Contact details.
  2. Check the box to complete your acknowledgement.
  3. Click either:
    • Submit to lodge transaction - you can then view this by using the Filter & Search function in the Lodgement Obligations tab.
    • Save to save this transaction as a draft (click the X to close) - you can then view this in Lodgement Obligations. You must lodge (submit) the transaction within 30 days of the liability date.