Bare Trusts and NSW Stamp Duty Compliance

News | Released: 27/02/2026 | Read: 5 Mins

The deed must be lodged for assessment within three months of execution, which provides evidence that the trust existed when the purchase contract was signed. In practice, revenue authorities use the stamping requirement to verify that the SMSF funded and owned the property throughout the transaction.

Key Reasons to Stamp the Bare Trust Deed

• Legal Compliance (NSW Duties Act, 1997): By law, trust deeds and transfers must be stamped in NSW. Stamping the Bare Trust deed satisfies the Duties Act requirements and confirms the trust is valid for duty purposes.
• Ownership Clarity: The stamping process records the beneficial owner of the property. This prevents future disputes or allegations of fraud by showing the SMSF is the real owner and the trustee is holding title only as nominee.
• Timing Evidence: A stamped deed establishes that the trust was created before or at the same time as the purchase contract. Revenue NSW and the ATO require that the SMSF and trust existed at contract date to apply the concessional duty. The stamp date on the deed proves compliance with this rule.
• Smooth Title Transfer: When the property is later transferred from the bare trustee to the SMSF (or nominee), Revenue NSW, the bank and the land titles office will require proof of the original stamping. A correctly stamped deed avoids delays or additional charges on the title transfer.
• Penalty Avoidance: Late or omitted stamping can trigger penalty interest and reassessment. If the deed is not properly executed and timed, the concessional duty may be lost and full ad valorem duty could apply. In short, proper stamping protects the SMSF from fines and from paying higher duty later.

Required Documents for Stamp Duty Assessment

Revenue NSW requires a comprehensive set of documents when assessing stamp duty on a bare trust deed. These documents prove the trust structure, the SMSF’s involvement, and that duty was correctly dealt with on the property.

The documentation framework reflects the evidentiary standard Revenue NSW applies when assessing the stamping of a Bare Trust Deed. Each document substantiates a critical element of the arrangement of the legal establishment and timing of the trust, confirmation of the SMSF as the beneficial owner and true source of funds, validation of duty paid on the underlying property transaction, and (where applicable) confirmation of LRBA compliance. From a governance and risk perspective, completeness and accuracy of these materials is essential. It reduces assessment delays, mitigates exposure to reassessment or surcharge duty, and protects the integrity of the SMSF’s asset ownership structure.

Each of these items must be obtained and submitted before lodging the stamp duty assessment. Together they prove that the SMSF was the true owner and funded the property purchase. As noted by industry guidance, all evidence “must confirm the SMSF as the actual/real purchaser and source of funds”.

Compliance Checklist and Next Steps

• Establish the SMSF and Trustee Company Early: The SMSF and its corporate trustee should be set up (and the trustee company incorporated) before the property contract is signed. This ensures the SMSF is in existence for duty concessions.
• Execute the Bare Trust Deed on Time: Typically, the contract is signed in the name of the trustee company “as trustee for the bare trust,” and the trust deed is executed on or shortly after signing the contract of sale. Revenue NSW allows up to three months after execution to lodge the deed, but earlier is safer.
• Collect All Documents Promptly: Assemble the list above as soon as possible – especially the original deed, any amendments, and the stamped contract. Obtain the bank statements and loan papers well before settlement.
• Lodge the Assessment via e-Duties: Submit the stamp duty assessment (Section 62B application) through Revenue NSW’s electronic duties system or via an agent. Include all required documents to avoid delays.
• Retain Copies of Everything: Keep the stamped deed, the duties assessment notice, title search results, and all evidence in the SMSF’s records. These will be needed when eventually transferring title to the SMSF or if audited.

Conclusion

Stamping the Bare Trust deed is a mandatory compliance step for SMSF property purchases in NSW. It provides official evidence that the SMSF (and not the trustee personally) acquired the property and financed it properly. By meeting the Duties Act requirements (including the fixed $750 duty for new deeds) and preparing the documentation above, accountants can ensure a smooth transaction for their SMSF clients. Attention to these formalities protects the SMSF from legal risks and extra duty costs and facilitates future title transfers without unexpected issues.

Ready to Get Your Bare Trust Deed Stamped?

Total Fee: $1,190

$750 – Revenue NSW Government Duty

$440 – Our Professional Service Fee

Take the Next Step

Collate your supporting documents
Email them to stamping@trustedeed.com.au

We’ll take care of the rest

Need Assistance?

Call us directly on 02 9684 4199
or email us at stamping@trustdeed.com.au

We’re here to make the process seamless, compliant, and stress-free for you and your clients.

Let’s get your documents stamped — promptly and professionally.

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

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