All Topics / Help Needed! / Using a trust structure and Land tax in Australia

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  • Profile photo of danyboidanyboi
    Participant
    @danyboi
    Join Date: 2015
    Post Count: 2

    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.

    Profile photo of danyboidanyboi
    Participant
    @danyboi
    Join Date: 2015
    Post Count: 2

    just an example calculation

    Land tax in WA for 1,125,000. = $4030
    land tax in wa for $600,000. = $1170

    but if all were owned by one entity value $1,725,000. land tax = $10270

    Assuming the trust entity thing works out that way

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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 Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 3 posts - 1 through 3 (of 3 total)

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