TITLE: NSW Pledges Stamp Duty Shield for Trusts as Federal 30% Tax Remains a Proposal
What NSW has pledged for trust elections
New South Wales has pledged to protect businesses from state stamp duty if they use the proposed federal Excluded Election Trust (EET) arrangement. But the promise is conditional on Labor winning the NSW election in March 2027, and businesses in other states still face uncertainty.
The pledge follows the introduction of federal legislation for a proposed 30% minimum tax on certain discretionary trusts. The bills are not yet law, and the NSW commitment does not create an exemption that businesses can rely on today.
NSW Treasurer Daniel Mookhey says a re-elected Labor government would ensure businesses using the federal EET arrangement do not face relevant NSW transfer-duty liabilities. He said he had worked with Federal Treasurer Jim Chalmers to provide businesses with certainty as early as possible.
The announcement is significant for businesses in Sydney and across New South Wales that use discretionary trusts. However, the timing and wording matter: it is a political pledge ahead of the March 2027 election, not a current change to NSW duty rules.
The Australian Industry Group welcomed the commitment. Its chief executive, Innes Willox, said it could provide certainty for around 120,000 NSW businesses structured through trusts. The group also said it would continue to work with other states and territories to seek solutions for an estimated 370,000 trust-structured businesses elsewhere in Australia. These are figures cited by the industry group, not a government count. (Ai Group’s 15 October statement)
Business NSW also welcomed the announcement. Its chief executive, Daniel Hunter, pointed to the organisation’s latest business conditions survey, in which 35% of businesses identified reducing taxes and charges as their top priority for the next NSW government. (AAP News reports on the pledge)
Why federal tax relief may not settle state duty
Federal income-tax rules and state stamp-duty rules are separate. A federal rollover or election mechanism does not automatically remove a liability under state duty law. That distinction is at the heart of the current uncertainty.
The proposed federal arrangements include an EET pathway for eligible existing discretionary trusts. Under the proposal, a trust electing into this arrangement would nominate beneficiaries and set distribution proportions. The structure could allow the trust to remain in place, but it would come with requirements for how income is distributed.
A separate proposed rollover pathway may allow eligible trusts to transfer assets to another type of entity during a defined period, subject to conditions. A transfer of assets can raise state duty questions, especially where assets are located in a particular state. Federal tax relief should therefore not be treated as proof that a state duty charge will not apply.
NSW’s pledge is focused on providing relief for businesses using the EET arrangement. Do not assume it covers every trust restructure, asset transfer or change to a trust’s beneficiaries. The scope of any eventual protection will depend on the final federal rules and the NSW measures put in place.
The federal 30% trust tax is still a proposal
On 14 October 2026, the Federal Government introduced the Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and companion legislation into Federal Parliament. The proposal would introduce a 30% minimum effective tax rate on income distributed through certain discretionary trusts from 1 July 2028.
The bills have not passed and are not law. They face further parliamentary scrutiny, including a Senate review, and details could change. The ATO’s overview of the proposed minimum tax explains the proposal and its status. Check official updates before making decisions based on the proposed rules.
The NSW pledge also does not cancel or alter the proposed federal tax. It addresses one potential state-level cost for businesses using a particular federal pathway.
Businesses outside NSW still need clarity
As at 15 October 2026, the NSW pledge is a state-specific, election-conditional commitment. Queensland, Victoria and other jurisdictions have not confirmed matching exemptions, so businesses with trusts or relevant assets in those states should not assume the same treatment will apply.
The issue is attracting attention because state duty costs could affect the practical impact of a federal restructure. The ABC reports that business groups have raised concerns about the cost of establishing whether a restructure is necessary. The Housing Industry Association told the ABC that some businesses were being quoted $10,000 to $25,000 per trust to assess the changes. These figures are attributed to the organisation and reflect reported concerns, not a standard fee. (ABC News coverage)
For businesses operating across state borders, or with international operations, the picture can be more complex. Keep Australian trust records clear and separate from overseas tax, GST and sales-tax reporting. That helps ensure compliance work remains organised as rules develop.
What Australian trustees can do now
There is no need to make a rushed change based on a pledge that is not yet in force. Instead, organise the records you may need to support accurate reporting and any future compliance steps.
- Keep trust documents together. Store the current deed, amendments, financial statements, tax returns and distribution records in one accessible place.
- Maintain a clear record of beneficiaries and distributions. Reconcile the beneficiary information with trust records so reporting can be checked efficiently.
- Document the assets and entities involved. Keep a current list of trust assets and any connected entities. This will help identify relevant records if rules change.
- Track official developments. Monitor the bills’ progress in Federal Parliament, ATO guidance and any formal NSW announcement or legislative change.
- Avoid assuming a duty exemption applies. Until the promised NSW measures are formally introduced, treat the pledge as a commitment for the future, not a current exemption.
- Keep bookkeeping and tax records up to date. Accurate records make it easier to complete returns and filings on time, whichever rules ultimately apply.
For context on the federal proposal, read our earlier Australia update on the 30% minimum tax introduced in Parliament.
At Sterlinx Global, we support Australian business owners and trustees through a Global Tax Compliance Suite, including bookkeeping, tax calculations, filings and year-end accounts. You provide your business data; we help keep compliance work structured and up to date. Contact us to discuss your trust arrangements.