Can I transfer my units?
You can ask us to register a transfer of units to anyone, but they must be:
- 18 or older
- in Australia and
- a wholesale client
as the Corporations Act defines this.
There is no minimum transfer amount.
We generally accept and will register complying transfers of units, however should a transfer not comply, we can refuse to register the transfer. The transfer is effective only once registered by us.
What forms does GDI need to receive?
- A GDI Unit Transfer Form completed by the transferor and the transferee, please note that stamp duty (discussed below) is most likely payable
- A GDI Investor Bank Details Form with the new bank account details
- Unless the transferee is already a GDI client, a GDI Change of Investor Details Form completed by the transferee
- Unless the transferee has already identified themselves to GDI, an Identification Form completed by the transferee, and noting this must be accompanied by certain documents
- An Adviser’s Certificate or an Accountant’s Certificate completed by transferee’s financial adviser or accountant, unless the transferee falls within some other category of wholesale client, or GDI already has the form from the transferee.
If the unitholder has died, there are additional requirements, discussed below.
All of these forms are available at www.gdi.com.au or call us. Instructions for each form are on the form.
How long does it take?
Once we have all the information, usually registration happens within 6 Sydney business days. Incomplete forms or delay in receiving information can mean delay in registration.
Is there a fee?
We charge no fees to transfer units.
What about Trust distributions?
Our trusts make distributions of income and/or capital regularly, often quarterly.
In the event of a transfer taking place, GDI will only effect transfers on the first day of a new quarter.
The original registered holder of units, the transferor, will be entitled to the full quarterly distribution of the quarter prior to the date of transfer.
The transferee will be entitled to the full quarterly distribution for that quarter.
What about stamp duty?
The basics
Stamp duty is an Australian State based tax and generally must be paid in respect of the transfer of units in GDI trusts.
If the land rich transfer provisions apply, usually the stamp duty is calculated on the higher of the value of the units transferred or the consideration (or price) paid. Stamp duty on unit transfers in unlisted trusts like the GDI funds can be as high as 5.5%, so if you are transferring units and the consideration and the value is $100,000, then the stamp duty you must pay would be $5,500.
If the land rich provisions do not apply and the register for the fund is held in NSW, the State of NSW usually charges a type of stamp duty called "marketable securities duty" charged at 0.6% of the total transfer price. If you are transferring units and the consideration and the value is $100,000 then the stamp duty you must pay would be $600.
The transferor and the transferee must agree who pays stamp duty, and often the transferee pays.
It can be complicated
Stamp duty law can be complicated. We recommend that you speak to your accountant or lawyer before agreeing to transfer units.
Duty is often based on based on the higher of the unit’s value and the consideration (and the unit value is generally the most recently available unit price: for information please call us).
Sometimes there are exemptions which mean that less or no duty is payable, for example if the transfer is because of a death or court order. It varies from state to state.
Getting stamp duty right is important. Not paying can have important consequences. You can incur fines if you pay late.
You must attend to stamp duty before you send transfer forms to us. In signing the transfer forms and sending them to us, both the buyer and the seller are telling us all duty payable is paid.
So it is important that you check.
What should you do?
Step one
GDI maintain’s its unit registers of its Property Trusts at its offices in New South Wales .The State of New South Wales charges that type of stamp duty called “marketable securities duty” at .06% of the total transfer price.
In step one you will need to fill out the GDI transfer form and have the form stamped at a New South Wales Stamp Duties Office. You will need to pay the duty at the time of stamping calculated on the higher of the value of the units transferred or the consideration (or price) paid.
Once you have had the Transfer form stamped, send the form to GDI’s office along with the other relevant forms detailed above in “What forms does GDI need to receive”.
Step Two
“Land rich” stamp duty might also be payable if you and your associates control 20% or more of one of our trusts (50% or more in some states) (although note that each of our trusts which holds Queensland property is a “widely held trust” for the purposes of the Queensland Duties Act, and so an exemption generally applies in any case).
In step two you should contact the State or Territory office of State Revenue relevant for the property held by the trust that you are invested in. You often simply complete and lodge a form, often called a compliance statement, available from the relevant State website:
GDI No.27: GDI Total Return Fund
This trust holds real property in the ACT and Tasmania, and units in a wholly owned subtrust that holds real property in SA. Contact the Australian Capital Territory, Tasmania and South Australia Offices of State Revenue for the procedure on paying stamp duty, if any, on transfers in this trust.
GDI No.29: GDI Office Fund
This trust holds real property in WA and Victoria. Contact the Western Australia and Victoria Offices of State Revenue for the procedure on paying stamp duty, if any, on transfers in this trust.
GDI No.32: GDI Premium Office Trust
This trust holds real property in SA. Contact the South Australia Office of State Revenue for the procedure on paying stamp duty, if any, on transfers in this trust.
GDI No.33: Brisbane Office Trust
This trust holds real property in Queensland. Contact the Queensland Office of State Revenue for the procedure on paying stamp duty, if any, on transfers in this trust.
We maintain our unit registers in New South Wales which charges stamp duty, on the transfer of units, called “marketable securities duty” of 0.06% of the unit price.
"Land Rich” stamp duty might still be payable, and if you and your associates control 20% or more of one of our trusts (50% or more in some States), then land rich duty can apply (although note that each of our trusts which holds Queensland property is a “widely held trust” for the purposes of the Queensland Duties Act, and so an exemption applies in any case).
What about death and divorce?
There are sometimes exceptions for transfers on death (called transmissions) and transfers when relationships break down. Stamp duty law can be complicated and we suggest you contact the relevant office of State Revenue and seek professional advice.
Contacts
The relevant office of state revenue can be found here:
What if a unitholder has died?
In the case of death of a unit holder, an executor is normally appointed to deal with the estate.
We are happy to deal with executors on a day to day basis once we receive a certified copy of:
- the will
- the death certificate and
- the executor’s photo ID
For unit ownership to then be transferred to someone else, we usually require:
- the documents referred to above under “What forms does GDI need to receive”
- a certified copy of the grant of probate of the will or letters of administration of the estate and
- a statutory declaration that the executor is in fact the executor and that to the best of their knowledge, information and belief no grant or reseal of representation of the estate has been applied for or made in the state in which the grant of probate of the will was made or letters of administration of the estate were issued and no such application for such a grant or issue will be made.
If a person dies without a will, the law sets out how their property will be shared out after all the debts have been paid. The laws of each State spell out what happens and again, the grant of probate of the will or letters of administration of the estate is what we usually need.
Other Transfers
Sometimes unit transfers occur as a consequence of court orders, typically family law proceedings or on bankruptcy. Contact us and we may be able to help, although primarily we recommend that you seek professional advice.
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