Chilli
30-09-2005, 08:38 PM
HI ,
I am in Qld where free land tax threshold for trust is $300K.
I have 2 IPs under a standard Disc Fam Trust ( land value is $X and $Y respectively) . Currently I have to pay land tax on $(X+Y-$300K) land value.
I understand that it is possible to split/clone the trust into 2 trusts, each is the owner of one IP (same beneficiary hence no stamp duty incurred etc).
I am hoping that after splitting I can reduce the total land tax, as the tax free threshold would be applied twice, one for each trust thus I would only pay land tax on $(X-$300K) for trust 1 , and on $(Y-300K) for trust 2.
Has anyone done this in Qld and could verify that this works (or otherwise ).
Thanks very much in advance.
I am in Qld where free land tax threshold for trust is $300K.
I have 2 IPs under a standard Disc Fam Trust ( land value is $X and $Y respectively) . Currently I have to pay land tax on $(X+Y-$300K) land value.
I understand that it is possible to split/clone the trust into 2 trusts, each is the owner of one IP (same beneficiary hence no stamp duty incurred etc).
I am hoping that after splitting I can reduce the total land tax, as the tax free threshold would be applied twice, one for each trust thus I would only pay land tax on $(X-$300K) for trust 1 , and on $(Y-300K) for trust 2.
Has anyone done this in Qld and could verify that this works (or otherwise ).
Thanks very much in advance.