Double Stamp Duty and the Assignment Clause Trap in SMSF Structures
Property lawyer Kathleen Chu has spent twenty years watching buyers sign contracts they didn't fully understand — and she joined us to share the three checks that save people the most money and stress.
Her message is that the contract is where deals are quietly won or lost. The clauses you skim, the trust or SMSF you buy in, the due diligence you didn't do — these are the things that come back to bite, sometimes to the tune of thousands in extra stamp duty, or a loan that suddenly won't settle.
None of it is complicated once someone explains it plainly, which is exactly what Kathleen does here: read the contract properly, do real due diligence, and get the ownership structure right before you sign — not after. It's the cheapest insurance in property.
At a Glance
This episode features Kathleen Chu (Specialist Property Solicitor) in an honest, plain-English conversation about how property and lending really work in Australia. It's the kind of behind-the-scenes detail that helps you understand your options — and the questions worth asking — before you talk to a bank.
- Guest: Kathleen Chu
- Primary Category: Legal & Conveyancing
- Duration: 9 min
Listen or Watch the Conversation
Stream Official Episode
Stream the authentic conversation directly or switch to Spotify or Apple Podcasts to follow our series.
Why This Episode Matters
Most property advice stops at the interest rate. The real story is everything else — how lenders, lawyers and the market actually make their decisions. This episode digs into the practical detail that tends to catch people out, so you're not learning it the hard way.
That the headline number isn't the whole story. How your income, your structure and the property itself are assessed can completely change the answer you get.
Sorting out your finances and structure before you commit means fewer nasty surprises — and a much better chance of settling smoothly and on time.
Who This Episode Is For
Kathleen Chu — Specialist Property Solicitor
Kathleen Chu is the principal solicitor at Ledger Legal, specializing in structuring commercial and residential acquisitions through trusts and SMSF LRBA vehicles.
Gold Nuggets From The Episode
Gold Nugget 1: The 'and/or assignee' stamp-duty trap
"Writing 'and/or assignee' on a contract can be treated by the tax office as a second sale."
That can mean paying stamp duty twice — once on the contract, and again on the transfer.
You can't just sign now and transfer it to your SMSF or trust later.
Key Lending & Property Insights
Buying property in an SMSF means using a specific 'bare trust' loan structure that the law requires.
The right legal entity has to be set up before you sign the contract.
Changing the buying entity after signing risks being charged stamp duty twice.
Borrower Situations Addressed
How Lenders May Look At This
Educational Assessment Guidelines
- The bank's legal team checks that your trust was set up before the contract was signed, not after.
What Borrowers Often Miss
Important Credit Realities
- Super fund loans have strict rules that a lot of regular mortgage brokers aren't set up to handle.
The double stamp-duty trap
Real-World Case StudyAn investor signed a $900k Brisbane contract in their own name with 'and/or assignee,' planning to buy through their SMSF.
The bank rejected the loan because the contract wasn't in the trust's name — and the state revenue office threatened a second $35k stamp-duty bill to move the title across.
Ledger Legal stepped in, cancelled the contract cleanly during the due-diligence window, and re-signed it in the correct trust name.
Loan approved under SMSF rules — with no double stamp duty.
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Credit & Legal Compliance Statement
Property & Mortgage Insights Australia (PMIA) publishes episodes and analyses as general observational and educational guides only. Nothing contained on this page or in the associated audio/video recordings constitutes personal financial advice, legal counsel, or personal tax advice. All numerical examples are anonymised case studies compiled for structural reference only. For specific lending advice tailored to your personal portfolio goals, secure an authorized personal consultation with an accredited finance broker.