Land tax

The applicable legislation is the Land Tax Management Act 1956 (NSW):

• • a special trust does not qualify for the threshold concession; and/or
• • a trust is not a special trust if it is:
• • ◦ a fixed trust;
• • ◦ a concessional trust;
• • ◦ a superannuation trust;
• • ◦ it qualifies for a deceased estate exemption; or
• • ◦ it is a family unit trust.

Note: a family unit trust is a defined concept.

Unit trusts generally are treated as special trusts unless they can meet certain conditions — including that the unitholders must be entitled to a fixed proportion of the income and capital distribution from the trust.

The applicable legislation is the Land Tax Act 2005 (Vic).

Key concepts in Victoria are:

• • A surcharge rate of 0.375% applies to land acquired by discretionary trusts in addition to land tax to Victorian landholdings between $25,000 and $1.8 million. The surcharge tapers for landholdings between $1.8 million and $3 million and does not apply to land holdings over $3 million;
• • the threshold for trusts is $25,000 instead of the general threshold of $250,000;
• • all trusts are taxed at the higher rate unless they come under the definition of excluded trusts;
• • some relief is available to deceased estates; and
• • a trustee of a fixed trust or a unit trust may avoid the surcharge by notifying details of the beneficial owners. The beneficiary will then be assessed as well as the trustee and a credit allowed for the tax paid by the trustee.

Note: From 1 January 2010, if a trustee fails to notify the commissioner of the acquisition, disposal of trust land or any other events under the Act, a penalty tax will be imposed: s 46K of the Land Tax Act 2005 (Vic).

The applicable legislation is the Land Tax Act 2010 (Qld).

Key concepts in Queensland are:

• • different thresholds apply to different taxpayers. Trustees, including trustees of deceased estates fall into a separate category;
• • the general threshold is $600,000 for resident individuals. For trustees it is $350,000 (2016 tax year). Tax above the threshold is $500 + 1c for each $1 more than $600,000 up to $1 million and $4500 plus 1.65 cents for each $1 more than $1 million up to $3 million. Additional rates apply for over $3 million instead of what is there; and
• • some exemptions apply where land is owned by a trust and is used as a residence for the beneficiaries.

The applicable legislation is the Land Tax Assessment Act 2002 (WA) and the Land Tax Act 2002 (WA).

Key concepts in Western Australia are:

• • land held on trust is taxable land;
• • a person in whom land is vested as trustee is liable for any land tax assessed on that land as if the land was the trustee’s own. The assessment of land tax is held separate from any assessment of land held by the trust on trust for another person or land held by the trustee in their own right: ss 9, 11(2) and (3) of the Land Tax Assessment Act 2002 (WA);
• • land held on trust will be subject to the same rates as other landholdings: s 5, Table 8 of the Land Tax Act 2002 (WA);
• • a trustee is exempt from land tax where property is held on trust for disabled beneficiaries and at least one beneficiary uses the property as his or her primary residence, and certain conditions are met: s 26 of the Land Tax Assessment Act 2002 (WA);
• • private residential property is exempt if it is owned by an executor or an administrator of a will as trustee and the beneficiary is entitled to a life interest and has a right to use and does in fact use, the property as their primary residence: s 22 of the Land Tax Assessment Act 2002 (WA); and
• • exemptions apply to land held on trust for religious bodies, an educational institution, a public purpose, a public, charitable or benevolent institution or a sports association: ss 32, 33, 36, 37 and 38 of the Land Tax Assessment Act 2002 (WA).

The applicable legislation is the Land Tax Act 1936 (SA).

Key concepts in South Australia are:

• • tax-free threshold of $369,000 (for 2018–19 year);
• • certain land is exempt based on how the land is used or who owns the land. There are a number of exemptions that would apply to charitable trusts and other similar trusts, eg “land owned by an association established for charitable, educational, benevolent, religious or philanthropic purposes”; and
• • trustees can apply to have any property they own assessed separately from property they own in another capacity.

The applicable legislation is the Land Tax Act 2000 (Tas).

Key concepts in Tasmania are:

• • the tax-free threshold is $25,000 (as from 1 July 2010);
• • charitable institutions, property owned for religious purposes and other specific categories are exempt from land tax (s 18);
• • holders of pensioner concession cards are exempt; and
• • there is a main residence exemption (s 6) and a primary production land exemption: s 7. This is because, although there is a power under the Act to do so, no tax has been levied against this category of land.

Land holdings of trustees are aggregated. A trustee is treated no differently to any other taxpayer and there are no special provisions that apply to trustees: s 24(1).

A main residence exemption will apply to an executor or administrator of a deceased estate where the residence is occupied by a beneficiary.

The applicable legislation is the Land Tax Act 2004 (ACT): ss 7 and 9 Land Tax Act 2004 (ACT).

Land tax is imposed on residential land held by a trustee, which is defined in the Act so as to exclude an executor of the will or the administrator of the estate or the manager or guardian of a person with a legal disability.