Land Tax and Trusts

[nhg]

Hi,

I heard you still have a land tax thresh-hold under a trust if you purchase property in Queensland, though the same cannot be said for NSW property.

I cannot find this written anywhere, so was looking for clarification.

Do trusts have a tax-free threshold in any state? If so what are the rules and regulations?

Thanks in advance for any info on this matter.

(I have gone over my threshold in NSW and it is a big kick in the guts , it is so hard to make any decent profit here with all the costs IMO).

 

[coastymike]

Yes trusts get a threshold in QLD https://www.osr.qld.gov.au/land-tax/about-land-tax/land-tax-rates.shtml

 

[nhg]

Victoria get's a break too.

http://www.sro.vic.gov.au/SRO/srona...575D20021EBE7C580F3A333F4AD44CA2575D10080AD1C

Does NSW also get land tax threshold under a trust? I am starting to question myself here.

 

[nhg]

Yes trusts get a threshold in QLD https://www.osr.qld.gov.au/land-tax/about-land-tax/land-tax-rates.shtml

Thanks Mike, I was on that page before, didn't realise there was a tab to go to the trusts page.

Cheers!

 

[Corey Batt]

SA too.

Some investors like to spread their properties across the States to mitigate land tax, others use trusts to stack thresholds. Do remember though that the latter results in higher accounting costs.

 

[nhg]

SA too.

Some investors like to spread their properties across the States to mitigate land tax, others use trusts to stack thresholds. Do remember though that the latter results in higher accounting costs.

Well my last purchase was $262k total. Rents $320/week, minimal depreciation.
Not great but ok.

Then I realised I overshot land tax so I'm looking at $3200 in land tax. Profit fail.

 

[bernardp]

Have a read of this mate:

http://www.osr.nsw.gov.au/lib/doc/factsheets/ofs_lt12.pdf

Essentially you are most likely referring to a family trust which OSR NSW classifies as a "special trust" - this trust does not receive the threshold.

I quote directly from FAQ of OSR NSW:

"The land tax threshold does not apply to special trusts which are taxed at a flat rate for amounts up to the premium land tax threshold and then at the premium rate thereafter."

Special trusts are most family trusts, discretionary trusts and some unit trusts.

Check out the fact sheet and hope this helps.

Cheers

Bern

 

[knightm]

yep so no threshold joy in nsw as its state based tax.

 

[nhg]

Thanks everyone,

I've lost my appetite for NSW. I am over the thresh-hold under my own name already, it pretty much just wiped out my profits on my new place.

Suddenly makes finishing off those granny flats seem ideal once again.