Do you have a trust? The absence of one sentence in your trust deed could be causing you to be paying more tax than you need to!

We are experiencing unprecedented rises in taxes and changes to legislation regarding these taxes across the state and country!

There are little known clauses in the legislation which could be causing you to be paying a higher rate of land tax and stamp duty on properties held or purchased in a trust.

What things do you need to consider in your trust Deed to ensure you are not being taxed at a higher rate?

Your trust deed needs to be checked to see if any trustees or beneficiaries are foreign residents or entities. If any person or entity that has more than 50% beneficial interest in the trust is a foreign resident or entity, the trust is deemed as a foreign trust and higher land tax will be applied. Additional duties will also apply if any property is purchased in the trust.

If you have a discretionary trust, the trust is automatically deemed a foreign trust if any potential beneficiary is a foreign person.

Further, a Discretionary Trust is also deemed to be a Foreign Trust if your Trust Deed does not explicitly state that it excludes foreign beneficiaries.

This means you will be paying higher taxes!

Our solicitors have experience in dealing with Trusts. If you need to have your Trusts reviewed or amended, contact our office on 03 9707 1155 or email admin@wslegal.com.au and our team and we would be pleased to assist!