Land tax threshold exemptions available for unit
trusts
In NSW, a fixed trust is eligible for land tax threshold
exemptions if it satisfies the definition of "fixed
trust" under the Land Tax Management Act 1956 (
Act), so that the beneficiaries of the trust are
considered to be the owners of the land at the taxing date of
midnight on 31 December prior to the tax year.
Revenue NSW provides guidance regarding the requirements for a
trust to qualify as a fixed trust. In summary, the trust deed must
satisfy the following:
- the unit holders must be presently entitled to all the income
and capital of the trust (that is, the unit holders must have a
right to demand payment of income and capital from the trustee and
the trustee must have the obligation to attend to such
request);
