Pursuant to Section 13 of the Land Tax Act 1936, where a property is owned by an individual or organisation on behalf of a Trust, the owner(s) (Trustees) can apply to have that property assessed separately from other land owned by the Trustee in another capacity.
Please note: In order to have property held on behalf of a Trust assessed separately for a particular year, notice of the Trust must be provided in writing to the Commissioner within that financial year. If the trust is recognised by the Commissioner for that year, recognition will be ongoing, subject to any changes to the trust arrangements that necessitate the matter being reviewed.
For the purpose of determining whether land is held in trust and, if so, the nature of that trust, RevenueSA requires the equitable owner or the legal owner of the land to provide, at a minimum, the following information :
All written matter relating to the creation of the trust, and any variation of the trust after its creation, and in particular:
a completed Notification of Land Held on Trust Form advising which property is owned on behalf of the Trust;
a copy of the fully executed deed for the Trust in its entirety (excerpts will not be accepted); and
copies of any supplementary deeds or deeds of amendment that have been made to the deed for the Trust.
In addition to the above, sufficient supporting evidence to demonstrate that the land, the subject of the notice, was acquired on behalf of the trust or otherwise vested in the trust will be required with your application.
It is important to note that the onus is on the taxpayer to satisfy the Commissioner that the relevant land is held on behalf of the trust stated in the application and therefore all relevant information should be provided in this first instance.
The trust will be recognised if the applicant can provide either one of the following:
the stamped Transfer document showing the consideration was paid by the Trust; or
the completed and Lodged Tax Return for the Trust showing the property as an asset of the Trust.
If neither of the above documents can be provided, the applicant will need to provide a minimum of two other forms of evidence in order to satisfy the Commissioner.
The types of evidence which may be considered, include:
the stamped Transfer document showing 'with no survivorship' or 'WNS';
the title showing 'with no survivorship' or 'WNS';
the signed minutes of the meeting of the Trust that evidences the purchase of the property on behalf of the Trust;
the Settlement Statement showing the purchaser as trustee for the Trust;
the signed Contract of sale showing the purchaser as trustee for the Trust.
It is important to note that each application for recognition of a trust will be treated on its own merits and in some cases further evidence may be requested.
To give notification that a property is held on behalf of a Trust, you need to complete a Notification of Land Held on Trust Form.
For further information, please contact RevenueSA.
Land held in a Special Disability Trust set up under Section 1209L of the Social Securities Act 1991 (Cwlth) or Section 52ZZZW of the Veterans' Entitlement Act 1986 (Cwlth) which constitutes the principal place of residence (PPR) of the primary beneficiary of that trust will be wholly exempt from land tax (on application) as and from midnight, 30 June 2015.
For further information on this exemption, please refer to the Exemptions from Land Tax page.