STOP PRESS: Deadline for SA Land Tax Trust nominations extended

Only a week ago, we discussed the looming 30th June deadline for trusts to nominate a beneficiary for SA Land Tax purposes. Demonstrating that a week is a lifetime in tax, that deadline has now been extended to 31st December 2021 with the passage of the Land Tax (Discretionary Trusts) Amendment Bill 2021. 

As we noted last week, the nomination relates to a rather complicated change that nevertheless affects almost every South Australian who owns real estate in a family trust. It was introduced as a part of the State Government's Land Tax reforms, and requires a discretionary trust to nominate a single beneficiary as the beneficial owner of property held in a trust, or be subject to higher rates of Land Tax. Paying the higher rate of Land Tax may not, however, be the worst outcome, depending on the circumstances, so the issue requires careful consideration of each and every situation. There may be cases where it is better not to make the nomination and instead pay Land Tax at the higher rates.

There had been a proposal to extend the deadline to 30th June 2022, but that appears to have been brought forward by six months. Still, an extension is an extension and the news is welcome.

It's important now though to make use of the extra time and ensure that if you own real estate in a trust, you look at your circumstances and work out what's best for you before 31st December.

If you need more information or assistance with this, please contact us.

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