Land tax and trusts

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For land tax purposes, land held on trust is treated differently from land held by a person in their own right. 

Trust surcharge rates are higher than general land tax rates and apply once the total taxable value of land held by the trust is $25,000 or more.    

The trust surcharge rate may not apply for certain types of trusts or if  notifications or nominations of the beneficiaries of the relevant trust have been made.  

Additionally, unit and discretionary trusts can nominate a Principal Place of Residence Beneficiary when the nominated beneficiary is using the trust land as their principal place of residence.  

There are rules around when beneficiary nominations or unitholder notifications take effect and how they impact the beneficiary or unit holder. It is important to seek professional advice before making a notification or nomination to understand the type of trust and the land tax implications.  

If you own or acquire land as the trustee of a trust, you need to let us know by completing a notice of trust acquisition in land.  

You can find the notice of trust acquisition in land form, along with trust surcharge rates and more at sro.vic.gov.au/landtaxtrusts