NSW LAND TAX AND DISCRETIONARY TRUSTS DEADLINE: 31 DECEMBER 2020
If either of the following applies to you, you need to act now;
- You have a discretionary trust that owns residential land in New South Wales (NSW); and/or
- You have a discretionary trust that holds an interest in a company (i.e. shares) or an interest in a unit trust (i.e. units) that owns residential land in NSW.
On 24 June 2020, the State Revenue Legislation Further Amendment Act 2020 (NSW) received Royal Assent. The legislation clarifies that a trustee of a discretionary trust owning residential property in NSW is taken to be a foreign person for foreign surcharges purposes, if the trust does not irrevocably prevent a foreign person from being a beneficiary of the trust. If you answered yes to either of the above two statements, you may need to amend your trust deed to exclude foreign persons as potential beneficiaries of your trust by midnight on 31 December 2020.
Find out more in our latest newsletter.