NSW Pledges Stamp Duty Relief for Trust Restructures Amid Federal Tax Changes

The NSW government proposed a stamp duty relief scheme for businesses and individuals restructuring their trusts, following the federal government's introduction of a 30 per cent minimum tax rate on discretionary trusts. This relief would allow discretionary trusts to transition to the federal Excluded Election Trust arrangement without triggering stamp duty. The proposal is contingent on Labor winning the March state election.

The federal government's new minimum tax rate changes how income distributed to beneficiaries is taxed and could potentially reduce benefits for property investors who use trusts. The NSW pledge removes a potential cost for businesses restructuring their trusts to avoid the proposed federal tax changes.