Newsletter; Land tax beneficiary nominations
From 1 July 2021, land held on trust will be subject to a higher rate of land tax and a lower land tax threshold unless a beneficiary is nominated. The land tax rates are as follows:
Land value General rate Trust rate (surcharge)
$ 0 - $25,000 $ 0+0.00% $ 0+0.00%
$ 25,001 - $450,000 $ 0+0.00% $ 125+0.50%
$ 450,001 - $723,000 $ 0+0.50% $ 2,250+1.00%
$ 723,001 - $1,052,000 $ 1,365+1.25% $ 4,980+1.75%
$1,052,001 - $1,350,000 $ 5,477.50+2.00% $10,737.50+2.40%
$1,350,001+ $11,437.50+2.40% $17,899.50+2.40%
By way of example:
$ 500,000 $ 250.00 $2,750.00 ($2,500 difference)
$1,000,000 $4,827.50 $9,827.50 ($5,000 difference)
Trusts have a once-off option to nominate the beneficiary of a trust (which must be made prior to 30 June 2021) and be subject to the general rate (it generally cannot be changed but it can be withdrawn). If a trustee chooses to nominate a beneficiary for land tax purposes, the beneficiary’s interest in the land will be aggregated with any other interests in land that they own.
If a 2020-21 land tax assessment has increased between $2,500 & $102,500 then you can apply for relief being 50% of the amount above $2,500 (the increase cannot be due to an increase in land value or the application of the higher trust rates). Applications for relief for 2020-21 land tax assessments must be made by 31 December 2021: https://www.revenuesa.sa.gov.au/landtax/transition-fund
