The Office of State Revenue (OSR) is imposing a Land Tax Surcharge on discretionary Trusts. Here’s some information about how Trustees can avoid unnecessary fees now or in the future.

What is the change?

Trusts that hold property will be subject to the Surcharge (either directly or indirectly) unless there is a specific clause in the Deed preventing the Trust from being able to distribute to foreign beneficiaries.  Most Deeds do not have an appropriate exclusion clause.

Who does it apply to?

The Surcharge will apply to all Trusts in NSW with landholding at 31 December 2019, but critically, the surcharge may be retrospectively applied to prior years. It also has the potential to affect Trustees that may hold land in the future.

What do you need to do next?

It is our aim to support Trustees to be compliant and to also prevent unnecessary Surcharges. All Trusts holding land should upgrade their Deeds to ensure the appropriate clause is included.  We have made an arrangement with one of our suppliers to have an amendment made available for $297, including GST, per Deed. 

If you’d like more information or to initiate a Deed amendment, please contact mail@adviceco.com.au