Mar 05, 2020 / News

SA Land Tax Amendments & Trusts – Are you ready?

On 28 November 2019, the SA State Government introduced amendments to the way land tax is imposed on properties held in South Australia effective 1 July 2020. 

One of the significant changes is that all trusts will be charged a surcharge rate on dutiable properties, unless specifically exempt under legislation, or a beneficiary nomination is made by eligible trusts prior to 30 June 2020. 

In addition to deciding whether to make a beneficiary nomination, all trustees are required under legislation to notify Revenue SA of any land they hold in their capacity as trustees of a trust(s). The documentation that needs to be provided to Revenue SA is quite onerous and includes copies of executed trust deeds, deeds of variations, prior year financial statements, tax returns and potentially land purchase documents (memorandum of transfer).

Who does this impact?

Landholders of assessable land in South Australia held in trusts, including partnerships and joint ventures where there is a partner who is a trust.

What do you need to do?

If your trust(s) holds property(s), then you need to action the following prior to 30 June 2020:

• Prepare and lodge an ownership notification with Revenue SA; and
• consider whether to make a beneficiary nomination.

Please note RevenueSA will be sending you a letter later this month to enable you to logon to the State Government Portal which will eventually detail all your property holdings.  This portal will also be the vehicle for all the necessary documents to be uploaded.

How can Nexia Edwards Marshall help you?

If you have any questions regarding the above or wish to have our assistance in preparing and lodging the ownership notification to Revenue SA, please contact your Nexia Edwards Marshall adviser or our South Australian Taxes expert George Papanicolaou.

The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.