Was wondering if any of the local experts - Dale/Julia/Mry can shed any light on this issue. I was just reading the Residential Property Trust of Australia PDS and found this in their Tax Section. These guys are specialising in resi IPs in a trust structure but only NSW and VIC IPs. The reason they are not in Qld and WA are as follows:
The Responsible Entity intends not to purchase property for the Trust that is situated in Western Australia until 50 or more unrelated persons are Unitholders in the Trust and 20 of them are entitled to 75% or more of the total issued Units (Widely Held Test) after Units are issued. The Responsible Entity also intends not to purchase property for the Trust that is situated in Queensland until the Widely Held Test can be satisfied, both before and after the issue of Units, all of which have been made to the public. If the Widely Held Test is not satisfied before property situated in either Western Australia or Queensland is purchased for the Trust, stamp duty will be payable in the respective jurisdiction upon the issue, redemption or transfer of Units.
Will this apply to HDTs and I suppose upon redemption of the units as well? I'm assuming most HDTs will not pass the widely held test.
The Responsible Entity intends not to purchase property for the Trust that is situated in Western Australia until 50 or more unrelated persons are Unitholders in the Trust and 20 of them are entitled to 75% or more of the total issued Units (Widely Held Test) after Units are issued. The Responsible Entity also intends not to purchase property for the Trust that is situated in Queensland until the Widely Held Test can be satisfied, both before and after the issue of Units, all of which have been made to the public. If the Widely Held Test is not satisfied before property situated in either Western Australia or Queensland is purchased for the Trust, stamp duty will be payable in the respective jurisdiction upon the issue, redemption or transfer of Units.
Will this apply to HDTs and I suppose upon redemption of the units as well? I'm assuming most HDTs will not pass the widely held test.
