Unit Trusts will now be treated as Special Trusts in NSW for Land Tax purposes.
What this means, I beleive, is that property held by a unit trust will no longer be entitled to the Land Tax free threshold. Land tax will be payable at the rate of 1.70% of the value of the land.
There is more info available on the Office of State Revenue Home page at:
http://www.osr.nsw.gov.au/pls/portal/docs/page/downloads/other/landtax_unit_trusts_2006.pdfTerryw
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Accordingly Ed Chan’s Property Trust will now not be able to claim the discount eitheir.
hellman
Just wondering, what is not a “special trust”?
If the trust is not classifed as a special trust, I believe that it can certainly get the land tax threshold?
There are gazillions types of trusts out there, surely there must be something that is not a special trust.
Any ideas?
My non legal opinion, is:
The unit trust was previously classed as a non special trust and it was deemed that the unit holders held an interest in the land owned by the trust.But a recent high court decision determined that this was not the case. The unit holders do not actually own the land, the trustee does.
Wording of the trust deed would be important here.
I think a bare trust would not be classed as a special trust. ie where A holds assets for B. B is the owner, but the assets are in A’s name. So I think B would have to pay land tax, and would get the threshold.
Terryw
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