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How to prevent trustees paying extra stamp duty or land tax in NSW

Publication date: 04 Nov 16 | Source: WEEKLY TAX BULLETIN

Issue: Issue 41, 30 Sep 2016

Pages: pp. 12-14

Abstract:

In June 2016, the NSW Budget introduced measures designed to extract more duty and land tax from foreign persons that acquire or hold residential land in NSW. The measures have been enacted via the State Revenue Legislation Amendment (Budget Measures) Act 2016. While the changes received good publicity initially, their impact on the way that discretionary and hybrid trust deeds need to be drafted, or amended, has not received the same publicity. 

From 21 June 2016, if a foreign person acquires residential land in NSW, they are liable for a 4% duty surcharge. If a foreign person owns residential land in NSW on 31 December 2016, then for the year beginning on 1 January 2017, they will be levied a 0.75% land tax surcharge.

This article looks at the impact on trusts.

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Author profile

Andrew Noolan CTA
Andrew is a partner in the Sydney law firm Brown Wright Stein Lawyers. His clients are accountants and lawyers in public practice that require advice on tax issues impacting on their clients. Andrew specialises in tax issues common to the SME and high wealth individual sectors. - Current at 23 September 2019
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