NSW Land Tax Unit Trusts and Amendments.
Potential Big Land Tax Savings
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As you may be aware, as a consequence of the High Court decision in Commissioner of
State Revenue v Karingal 2 Holdings Pty Ltd, Unit Trusts in New South Wales are taxed
as Special Trusts for Land Tax Purposes.
Special Trusts are taxed at the rate of 1.7% on the combined taxable value of all land
owned by the Trust. The $352,000 tax free threshold does not apply.
The State Revenue Legislation Amendment (Tax Concessions) Act 2006 contains a provision
for existing Unit Trusts to be amended to take advantage of the new rules. The concession
applies only if the variation does not directly or indirectly result in a change in the
proportion of any income or capital to which a unit holder is entitled under the Trust.
This concession applies retrospectively for 2006 and 2007, as well as continuing into the future. However, Amendments
must be executed by 31 December 2007.
Each Unit Holder and Trustee should seek professional advice prior to proceeding.
For more information, please refer to the OSR Information Sheet via the link below to assess whether
you or your clients can make big Land Tax savings by either amending an existing Unit Trust, or setting up a
NSW Land Tax Unit Trust. Feel free to contact us via the panel below should you have any queries.
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Information Sheet from the NSW Office of State Revenue
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Order Here
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If you would like to order a NSW Land Tax Unit Trust or Unit Trust Amendment, please download, complete and Fax the order form below.
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Fax to: 1800 633 644
Our price is $495.00 (Inc. GST).
 Download Order Form Here (MS Word Format)
 Download Order Form Here (PDF Format)
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If you are placing an order for a NSW Land Tax Unit Trust Amendment, you will need to forward a copy
of the original Trust Deed (with your order) to:
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Incorporate Now
PO Box 12707
A'Beckett Street
Melbourne 8006
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we will return the original with your order.
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