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LAND TAX ON TRUSTS

LAND TAX ON TRUSTS IN MELBOURNE

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Victorian Land Tax on Trusts

LAND TAX ON TRUSTS
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TRUST OWNERSHIP DETAILS

LAND TAX OUTCOME

Trust owned land is currently exempt under the Land Tax Act

Land remains exempt under the Land Tax Act 2005

The Trust is an excluded trust

No surcharge is payable, land is assessed at ordinary tax rates

Land is owned by a discretionary trust established prior to 31 December 2005 and trustee has nominated a beneficiary

No surcharge is payable. May affect the land tax liability for the nominated beneficiary.

Land is owned by a discretionary trust established prior to 31 December 2005 but the trustee does not nominate a beneficiary

Surcharge is payable on trust land

A discretionary trust established prior to 31 December 2005 with a nominated beneficiary acquires land after 31 December 2005

No surcharge is payable on land owned at 31 December 2005, however, surcharge is payable on land acquired after 31 December 2005.

Land is owned by  discretionary trust established after 31 December 2005

Surcharge is payable on trust land

Land is owned by fixed trust and trustee notifies SRO of all beneficiaries and their interests.

No surcharge is payable. May affect the land tax liability of the beneficiaries.

Land is owned by a fixed trust but trustee does not notify SRO of beneficiaries

Surcharge is payable on trust land

Land is owned by a unit trust and trustee notifies the SRO of all unit holders and units held

No surcharge is payable, but may affect the land tax liabilities of the unit holders.

Land is owned by a unit trust but trustee does not notify unit holders

Surcharge is payable on trust land

Land owned is used as the Principal Place of Residence of a beneficiary or unit holder. Trustee nominates a resident beneficiary

No surcharge is payable on the land used as the principal place of residence. Surcharge remains payable on other lands owned by the trust.

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Source – State Revenue Office

NEED MORE INFORMATION

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