first home buyer concessions for beneficiary of a trust

Discussion in 'Property Information Resources & Tools' started by frecak, 27th Sep, 2019.

Join Australia's most dynamic and respected property investment community
  1. frecak

    frecak Active Member

    Joined:
    4th May, 2019
    Posts:
    31
    Location:
    melbourne
    like the title says, I live in a house, owned by a trust of which I am a beneficiary. The house is in the name of the trustee - not me. I've never owned a house, bought a house, held any pecuniary interest in a house.
    Therefore I don't see a problem if I applied for the first home buyer and land tax concessions from the NSW govt for a house in my name, paid for by me, as my PPOR. Am I right?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,943
    Location:
    Australia wide
    Probably ok.

    See my thread in the legal section written in the last week or so.
     
  3. frecak

    frecak Active Member

    Joined:
    4th May, 2019
    Posts:
    31
    Location:
    melbourne
    Thanks terry. Another question. Land Tax. If a trustee buys the land and all the beneficiaries live on that land as thier PPOR - the trustee doesn't pay land tax.

    Can a corporate trustee avail of this? It's a headache otherwise if the individual trustee moves/dies and the deed, etc needs to be transferred....

    eg; in NSW, "if you own the home you live in through a trust* or company, you need to pay land tax if the land is owned by a company or owned jointly with a company; UNLESS the company is a ‘trustee company". *only some trust types.
    Exemptions and concessions tax exemptions.

    The situation for QLD however is unclear. T'would appear that a corporate trustee is not possible.
    https://www.publications.qld.gov.au...-land-use-as-a-home-trustees-v10-july2019.pdf
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,943
    Location:
    Australia wide
    is this a bare trust you are a beneficiary of?
     
  5. frecak

    frecak Active Member

    Joined:
    4th May, 2019
    Posts:
    31
    Location:
    melbourne
    Its hypothetical. Lets say a trust that isnt automatically disqualified from an exemption (discretionary trust for QLD or a unit trust for NSW)
    Is it relevant to corporate trustee eligibility?
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,943
    Location:
    Australia wide
    No exemptions in nsw
    Except for a fixed unit trust with individual trustee