Land Tax Sur

Discussion in 'Accounting & Tax' started by pork_belly, 1st Apr, 2021.

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  1. pork_belly

    pork_belly New Member

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    Hi All,

    This question is in relation to VIC Land Tax around a discretionary trust with corporate trustee.

    If the corporate trustee is holding property in trust for the family trust, is lax tax at general rates or the surcharge land tax rates?

    This is assuming that the property is just an investment property (so nor PPR), there are named beneficiaries in the deed, no absentee beneficiaries and it's a post 2006 property (e.g. I go buy one tomorrow).

    It's not clear from their website:
    This surcharge rate may not apply if you make certain notifications or nominations of the beneficiaries of the relevant trust.

    A notification or nomination can affect the rate of land tax that applies to a trust. The notifications that you can make depend upon the type of trust. Each notification can have a different consequence.
     
  2. Terry_w

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

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  3. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Surcharge rates apply to disc trusts. Also consider if the trust is absentee as a further absentee surcharge or another 2% may apply. If ONE beneficiary is an absentee its on. Consider named persons in the deed, appointors and consider legal advice.

    Absentee trusts | State Revenue Office