Land Tax and Trusts

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From: Miakat .


Hi all,

I was under the impression that if you held property in a trust, then you would have exemption from land tax up until the usual limit. As you started to approach that limit, you'd start up a new trust.

I spoke to someone else who has told me that their accountant said their is no land tax free threshold in trusts.

I've read through Renton's 'Family Trusts' with no help.

Can anybody help clear this up?

Thanks in advance

Miakat
 
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Reply: 1
From: Waverly Bay


Hi Miakat - sounds like you are a NSW investor? If so, the Land Tax provisions in NSW operate to impose land tax on "Special Trusts" which is defined to include discretionary trusts. Unfortunately - and as you pointed out - for both companies and Special Trusts holding NSW property, the Land tax thresholds do not apply.

H/ever, concessions may be available in limited circumstances for certain types of properties - check out the attached for my info: http://www.osr.nsw.gov.au/pdf/ltinfo.pdf

cheers
 
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Reply: 1.1
From: Miakat .


Thanks for the reply Waverly,

I was hoping it wasn't true, but alas it seems that it is. I will now have to give thought to setting up a trust.

Miakat
 
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