I have heard that the NSW Office of State Revenue have changed their approach to land tax on land held by unit trusts in response to a High Court case. Do your unit trusts get around this?
Where a unit trust with one of our standard deeds holds land in NSW, it is possible that the NSW Office of State Revenue will apply land tax to the trust itself, as a "special trust" and at the special trust rates, rather than the individual unit holders as unit holders in a "fixed unit trust". This is because the unit holders under our standard deed do not have any interest in specific assets of the trust (i.e., the land), but only have a proportionate interest in the assets of the trust as a whole.
However, we do now also provide a separate trust deed that is a fixed unit trust for NSW land tax purposes (as confirmed by the NSW OSR), as well as for income tax purposes.
Also refer to S.3A of the Land Tax Management Act 1956 for the definition of a "special trust".