Should You Move an Existing Property Into a Trust or Company Now?

Moving an existing property into a trust or company after the recent tax changes usually triggers stamp duty at market value, often crystallises capital gains tax (CGT), and can reduce borrowing power. For most Australians, the cost of shifting title now outweighs the tax benefits, so the safer move is often to leave ownership as is and optimise future purchases instead.

In this guide we’ll step through the main traps and costs so you can decide, this week, whether to restructure or stay put.

Transferring a property into a trust or company usually triggers stamp duty and CGT.

1. Why people want to move properties now – and the core reality

The 2026–27 reforms remove the simple 50% CGT discount from 1 July 2027 and tighten negative gearing on many established residential properties. That has more investors asking: “Should I move my existing properties into a trust or company now?”

In most cases, the answer is no. The law usually treats a transfer into a trust, company or SMSF as a sale at market value. That means:

1. Stamp duty based on today’s value (state law).
2. CGT on the unrealised gain to date (federal law).
3. Potential land tax and lending side‑effects.

If you’re still picking structures for new deals, read /insights/personal-trust-company-best-structure-geared-property-2026 first, then come back to this article for existing properties.

2. The big three tax costs: duty, CGT and land tax

2.1 Stamp duty on transfers to a new structure

State revenue offices usually treat moving a property into a trust or company as a dutiable transaction at market value, even if you own both.

Illustrative example (NSW, investment unit)

• Market value: $1,000,000
• Original cost: $600,000
• Current owner: individual
• Proposed owner: family trust

Estimate the transfer duty:

• Duty on $1,000,000 in NSW is roughly $40,000+ (check current scale).
• Legal and registration costs might add $2,000–$3,000.

You are paying duty again as if you were buying your own property back.

2.2 CGT on deemed disposal

For CGT, moving the property is generally treated as if you sold it at market value and bought it back in the new entity.

Using the same example:

• Cost base: $600,000
• Market value: $1,000,000
• Gross capital gain: $400,000

Under the reforms, most individuals face at least 30% tax on real gains after 1 July 2027. Depending on timing and transitional rules, you could easily see a six‑figure tax bill just to move the title.

Remember: from 1 July 2027 the existing 50% CGT discount is abolished and a minimum 30% tax on capital gains applies to most Australian residents. Handling that by choice now rarely makes sense unless there is a very strong asset protection or estate planning reason.

2.3 Land tax changes after moving into a trust or company

Land tax sits on top of federal rules. Shifting a property into a trust or company can:

• Lose a land tax threshold.
• Push you into a higher land tax rate.
• Trigger trust surcharge rates if the trust deed isn’t fixed or disclosure rules aren’t met.

For a clear framework on modelling entry, holding and exit taxes together, see /insights/federal-property-tax-rules-land-tax-stamp-duty-interactions.

2.4 Quick comparison: leave it vs move it

For many households, the left column wins on pure numbers.