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NSW Land Tax Assessments Include a 2% Foreign Persons Surcharge for Family Trusts

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24th November 2020

Warning for all Family Trusts that own residential land in NSW - Revenue NSW (Formerly known as the Office of State Revenue) considers Family Trusts to be automatically subject to the Foreign Persons Surcharge on stamp duty and Land Tax for any New South Wales residential property owned through the Trust.

Revenue NSW has recently written to Trustees of Family Trusts that hold land to remind them that they will be subject to the 2% foreign person land tax surcharge unless their Trust Deeds are updated to exclude foreign beneficiaries. According to the Revenue NSW letter, “In order to avoid any surcharge liabilities, new and amended trust deeds will need to irrevocably exclude current, or future foreign beneficiaries from receiving trust distributions.” Fortunately, there are transitional provisions in place for Trusts that are updated before midnight on 31 December 2020.

You will need to lodge any updated discretionary deeds with the NSW Revenue Department and complete a return at NSW Land Tax Online. The deadline is midnight 31 December 2020 to vary all relevant discretionary trusts.
For additional information go to NSW Revenue Department – 1300 139 816 and to search “trusts” at
www.revenue.nsw.gov.au for further information.
Click Here to review the NSW Revenue Commissioners Practice Note 004 v.

We can review and update your existing Trust Deed, please contact PantherCorp on 9388 0551 or office@panthercorp.com.au.

We urge you to act quickly with regards to these changes for any Family Trust (even those based outside of NSW) that owns or intends to purchase residential property in NSW, to minimise financial hardship caused by having to pay these surcharges.