I was under the impression that trusts in QLD get their own land tax free threshold of $350k. I have seen it commented on Somersoft that this is a reason why when buying in QLD it could be worthwhile setting up each property bought in it's own trust.
However, just came across this on the QLD Treasury department website:
And then reading section 4 of "LTA020.1.1?Assessment of trustees under section 20 of the Land Tax Act 2010" from https://www.osr.qld.gov.au/legislation-rulings/public-rulings/land-tax/lta020-1.shtml it seems that the trustee would be liable for land tax on the total taxable value of all taxable land that is subject to those "cloned" trusts.
However it seems companies do also get the land tax free threshold of $350k - so does the land tax get assessed for the trustee - which if is a corporate trustee, then gets the threshold? So if each trust had it's own corporate trustee then each unit trust effectively gets the threshold?
Regards,
Jason
However, just came across this on the QLD Treasury department website:
Land held under different trusts will be assessed together for the purposes of land tax if the:
trustee is the same for all the trusts
beneficiaries are the same for 2 or more of the trusts
beneficiaries have the same interests in those trusts when land tax is calculated.
These types of trusts are known as ?cloned trusts?.
And then reading section 4 of "LTA020.1.1?Assessment of trustees under section 20 of the Land Tax Act 2010" from https://www.osr.qld.gov.au/legislation-rulings/public-rulings/land-tax/lta020-1.shtml it seems that the trustee would be liable for land tax on the total taxable value of all taxable land that is subject to those "cloned" trusts.
However it seems companies do also get the land tax free threshold of $350k - so does the land tax get assessed for the trustee - which if is a corporate trustee, then gets the threshold? So if each trust had it's own corporate trustee then each unit trust effectively gets the threshold?
Regards,
Jason