Hi I am on the verge of buying a house for 200K in a regional town (rundown house to renovate). Land value is $100000. It will be the first property owned by our family's discretionary trust.
Is it liable for land tax and if so how much? The websites I looked at did not give information about trust threshholds.
Thanks all in advance!
What you need to search on is the term trust surcharge
As you have not mentioned what state you have the land in you should start at the relevant state revenue office for your state.Also there seems to be a need to inform the SRO of your trust holding the land
In Victoria0.375 % is charged from $25,000 to 3 million on top of the normal land tax rate scales.
In Victoria see link
http://www.sro.vic.gov.au/sro/SROnav.nsf/childdocs/-3A87315B22BC23FFCA2575A100441F59-A6FAB6BE64979127CA2575A100441FA4-2B349BF98DE9FF4BCA25768E00831147-6F409978B796F7B7CA2575D60023D584
http://www.sro.vic.gov.au/sro/SROnav.nsf/childdocs/-3A87315B22BC23FFCA2575A100441F59-A6FAB6BE64979127CA2575A100441FA4-2B349BF98DE9FF4BCA25768E00831147-24F090DCAEB985D7CA25768E008359B2
in victoria
<$250,000 is no land tax but the .375 % is charged on top of zero.
So 75,000 is taxable at .375% which I think work be worked out as $75,000 * .375/100 = $281.25
http://www.sro.vic.gov.au/sro/SROnav.nsf/childdocs/-34FAD0EFBAFF8BE0CA2575A100442101-C580F3A333F4AD44CA2575D10080AD1C?openNSW info
http://www.cleardocs.com/clearlaw/trusts/unit-trusts-land-tax.html
http://www.osr.nsw.gov.au/lib/doc/factsheets/ofs_lt02_curr.pdf
http://www.osr.nsw.gov.au/lib/doc/factsheets/ofs_lt09.pdfAdelaide
http://www.revenuesa.sa.gov.au/taxes/ltaxlandheldontrust.htmlbrisbane
http://www.osr.qld.gov.au/legislation-rulings/public-rulings/land-tax/lta009-1.shtmlduckster wrote:What you need to search on is the term trust surcharge
As you have not mentioned what state you have the land in you should start at the relevant state revenue office for your state.NSW, Sorry should have said that.
Thanks Duckster. That was one helluva helpful and comprehensive answer!
Seems we will be up for $100K x 1.6% + $100=$1700 each year. More dead money (along with rates and insurance). Though at least with rates and insurance your garbage gets collected and you're covered if it burns down. But land tax??? What a waste of money!
Is a trust really worth it when it immediately triggers this rubbish? This is just a direct hole in our profit and unfortunately wipes out most of the benefit. As opposed to buying in my or my wife's name where we would have no land tax issue.
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