TITLE: WA Confirms Stamp Duty Relief for Trust Election as Compliance Cost Concerns Grow
WA relief is limited to one proposed pathway
As at 18 October 2026, Western Australia has confirmed it will not charge stamp duty on discretionary trusts that opt into the proposed fixed-distribution election. The move follows a similar, but election-conditional, pledge in New South Wales. It offers a narrow form of relief, not a general exemption for businesses transferring trust assets to a company or fixed trust.
At the same time, Assistant Treasurer Daniel Mulino has acknowledged that affected businesses could face compliance costs in the thousands of dollars. And questions remain about how the proposed 30% minimum tax could interact with distributions to corporate beneficiaries.
WA Treasurer Rita Saffioti has confirmed that Western Australia will not impose stamp duty on discretionary trusts opting into the proposed Excluded Election Trust (EET) regime. The EET option is intended to let eligible trusts make fixed distributions to nominated beneficiaries, rather than face the proposed minimum tax.
New South Wales has also pledged stamp-duty protection for trusts using this election. However, the NSW commitment depends on Labor winning the state election in March 2027. It is a future pledge, not a current exemption.
The limits matter. Neither announcement should be treated as blanket relief for every trust restructure. As the Australian Financial Review reports, Grant Thornton’s David Montani said the NSW measure covers the EET option, not transfers of assets from a trust to a new entity. Institute of Public Accountants tax adviser Tony Greco also cautioned that some businesses may be confusing narrow EET relief with a broader exemption.
Montani described the policy as “virtually worthless” for asset transfers. His criticism concerns that particular restructuring route: stamp duty may still arise when a business moves assets from a discretionary trust into a company or fixed trust.
The practical distinction: electing into the EET regime may let an eligible trust remain in place. Transferring assets to another entity is a separate step, with separate state-duty consequences.
Compliance costs could reach thousands of dollars
On ABC’s Insiders on Sunday 18 October, Assistant Treasurer Daniel Mulino said the cost for a business to comply would depend on its arrangements and the restructuring pathway it takes. He said costs would be in the thousands of dollars, rather than tens of thousands.
Mulino estimated there are around 800,000 discretionary trusts in Australia, about double the number 25 years ago, and put economy-wide adjustment costs at approximately $50 million. These are broad estimates, not a standard cost for each trust.
The AAP report also notes that Labor will need support from either the Coalition or the Greens to pass the bills. The Coalition has opposed the proposal, leaving the parliamentary outcome uncertain.
For Australian businesses, including those operating across NSW, Western Australia and Queensland, the proposal could mean additional work to maintain trust, beneficiary and distribution records. The cost and workload will depend on the business’s structure and the final legislation.
Bucket company distributions raise a separate tax concern
A further issue affects trusts that distribute income to a corporate beneficiary, often called a bucket company. BDO tax partner Tony Sloan has warned that some arrangements could face a combined tax burden of 60% to 70%.
Under the proposal, corporate beneficiaries would not receive the same credit for the trustee’s 30% minimum tax that eligible individual beneficiaries could receive. Sloan’s concern is that the same underlying income could therefore be taxed at trustee level and again when assessed for the corporate beneficiary.
This is a reported risk, not a confirmed outcome for every trust using a bucket company. The government has responded that individuals who receive trust income directly will not pay more than the 47% top marginal rate. It has also said that corporate beneficiaries would be assessed on trust income to which they are entitled, without claiming a credit for tax payable by the trustee.
The distinction between individuals and companies is important. Keep records that clearly identify each beneficiary, the type of beneficiary and the income allocated to them. That information will be essential for accurate reporting if the proposal becomes law.
The bills are not law yet
The federal bills were introduced on 14 October 2026. They have been referred to the Senate Economics Legislation Committee, which is due to report by 13 November 2026. The proposed start date is 1 July 2028.
The bills remain subject to parliamentary scrutiny and may change. The government needs support from either the Coalition or the Greens to pass them; the Coalition has opposed the legislation. Check the Australian Parliament’s Senate committee information and the ATO’s overview of the proposed trust minimum tax for official updates.
Until the rules are final, avoid treating the proposed EET relief or any restructuring pathway as settled law. State stamp-duty treatment also needs to be considered separately from federal tax treatment.
For context, read our 15 October update on NSW’s stamp-duty pledge and our earlier coverage of the bills’ introduction.
Organise your compliance records now
You do not need to make a rushed change based on legislation that has not passed. You can, however, make it easier to manage future compliance by keeping your records current.
- Keep trust documents together. Store the deed, amendments, financial statements and returns in one accessible place.
- Reconcile beneficiary details and distributions. Clear records help support accurate reporting and reduce last-minute checking.
- Identify corporate beneficiaries. Record which entities received distributions so the relevant reporting can be reviewed consistently.
- Track trust assets and related entities. A clear record helps distinguish an election from a transfer to another structure.
- Monitor the legislation and state announcements. This is particularly important if your business operates in more than one Australian state.
Sterlinx Global operates as a Global Tax Compliance Suite. We provide structured bookkeeping, tax calculations, filings and year-end compliance support. You provide your business data; we help keep the compliance work organised and up to date. Contact us to discuss structured compliance support for your business.
FAQs
Which Australian states have announced stamp-duty relief for the proposed EET option?
As at 18 October 2026, Western Australia has confirmed it will not charge stamp duty for eligible trusts opting into the EET regime. New South Wales has made a similar pledge, but that commitment depends on Labor winning the state election in March 2027, so it is a future pledge rather than a current exemption.