All Topics / Help Needed! / Using a trust structure and Land tax in Australia
Hi
Im just starting out on my investment journey and looking for some advice/ understanding on Land tax in Trusts.
Im buying properties that are positively geared, So i decided to setup a family trust structure.My current holdings
My name : my home, and 1 investment property that is very negatively geared ( and has a $4000 land tax bill)
Family Trust : 2 properties valued around 300k each – recently purchased both positively geared.My understanding
My personal properties pay land tax on their holdings, and my trust then pays land tax on its own holdings.I have heard of people setting up a trust for each property, or holding at most two properties per trust to lower the land tax, as there is basically a 300k tax free threshold ? is this correct ?
Is it worth setting up a trust for each property if the property values are low around the 300k mark, Or how does it work ?Trying to plan my strategy before buying any more property.
just an example calculation
Land tax in WA for 1,125,000. = $4030
land tax in wa for $600,000. = $1170but if all were owned by one entity value $1,725,000. land tax = $10270
Assuming the trust entity thing works out that way
Land tax is state legislation so it is completely different from state to state. I am not sure about WA off the top of my head.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.