SMSF Alert: Bare Trust Deed Stamping Must Not Be Overlooked

News | Navjot Kaur | Released: 28/05/2025 | Read: 3 Mins

Many accountants preparing SMSFs with Limited Recourse Borrowing Arrangements (LRBAs) may not realise the crucial importance of stamping or lodging the Bare Trust deed — a legal requirement that protects your clients’ investments and compliance status.

 

Failing to ensure the Bare Trust deed is properly stamped or lodged is a common and costly compliance oversight that can jeopardize the entire borrowing arrangement, resulting in serious legal, tax, and financial consequences. 

What is a Bare Trust Deed?

A Bare Trust (also called a Property Custodian Trust) is a legal arrangement where the SMSF trustee borrows funds under a Limited Recourse Borrowing Arrangement (LRBA) to purchase property held in trust by a bare trustee. The Bare Trust deed sets out this relationship and is crucial to ensuring compliance with superannuation law.

Why is Stamping the Bare Trust Deed Important?

Legal Enforceability: 

 

For the Bare Trust deed to be legally valid and enforceable, it must comply with relevant state laws, including the payment of stamp duty where applicable. This ensures the SMSF’s property interests are protected. 

 

ATO Compliance: 

 

The ATO’s SMSFR 2012/1 ruling requires the LRBA to be legally effective from the time the asset is acquired. An unstamped or improperly stamped Bare Trust deed risks the LRBA being invalidated, leading to adverse tax consequences. 

 

State Duties Compliance: 

 

States like NSW require stamp duty payment on Bare Trust deeds under specific provisions (e.g., Section 62B of the Duties Act 1997 NSW). Victoria mandates lodgement without duty.  

Consequences of Not Stamping the Bare Trust Deed

Lodgement Timeframe

NSW

In New South Wales, duty is payable on Bare Trust deeds and to ensure the deed is stamped correctly, you must lodge the deed through a Revenue NSW (OSR) agent though OSR public lodgement system.

 

Documents required -

• Original executed Bare Trust Deed (also known as Property Custodian Trust Deed) 

• Copy of any deeds of amendment / variation to the Bare Trust Deed 

• Stamped Front Page of the Contract for Sale of Land, that has been stamped with ad valorem duty. If the contract of sale is not stamped, we will need evidence that the stamp duty has been paid on purchase of land. Scanned copy of the original document is acceptable. 

• Bank Statements of the fund (Self-Managed Superannuation Fund), confirming the deposit for property acquisition and settlement of the purchase price – note that the bank account should be in the name of Trustees of the SMSF ATF the SMSF 

• Loan Agreement Copy from the lender for the balance amount (or loan approval letter if finance is pending)

• Property Custodian Trust Corporate Trustee details 
  1. Correspondence address of all directors and shareholders 
  2. Contact phone number and email address of each officeholder (director) and shareholder 
  3. Certified photo ID for all directors (e.g., passport or NSW driver’s license) 

• Completed Purchaser/Transferee Declaration Form 

VICTORIA

In Victoria, no duty is payable for Bare Trust deeds. However, the Deed needs to be lodged with the State Revenue Office (SRO). The process involves lodging the Deed through SRO agent using Duties Online or through the SRO’s public lodgement system. 

 

Documents required - 

•  Scanned Copy of the Executed Bare Trust Deed (Wet signature or digital signature) 
•  Signed Declaration stating that the Deed was executed in Victoria 

 

How Trustdeed Can Help – Our Services and Fees

• NSW: Our Fees: $660 (incl. GST) + applicable OSR fees 

• VIC: Our Fees: $330 (incl. GST) – No SRO duty payable 

At Trustdeed, we provide a streamlined, end-to-end stamping service to make the process as efficient and stress-free as possible: 

• End-to-End Stamping Service: We handle the entire process—from collecting the necessary documents to lodging deeds with Revenue NSW or the State Revenue Office (SRO) in Victoria. We ensure timely stamping or lodgement to keep your transaction on track. 

• Expert Advice: Our experienced team stays up to date with the latest regulatory requirements, offering clear and practical guidance to help you remain compliant. 

• Fast Turnaround: We understand the importance of timing. Our efficient processing helps you avoid settlement delays. 

Trust Trustdeed to handle your deed stamping with speed, accuracy, and expertise. 

Get in Touch

Visit www.trustdeed.com.au for more details or call us on(02) 9684 4199

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