Discretionary trusts are generally subject to surcharge rates of land tax. However, general rates of land tax can apply to the trustee where the discretionary trust has previously made a valid nomination of a beneficiary in relation to land owned before 1 January 2006 (pre-2006 land).
While it is now too late to make a new nomination in relation to pre-2006 land, the trustee can nominate a subsequent beneficiary provided the trustee:
- Owned land before 1 January 2006,
- Notified us of the land held on trust,
- Nominated beneficiary or beneficiaries in place, and
- Wants to notify us about a subsequent beneficiary upon the death of the previous nominated beneficiary or the revocation of their nomination.
You can notify us of a subsequent beneficiary by lodging a nomination form. This form must be completed by the trustee or their representative (e.g. solicitor) of the discretionary trust.
Please note, once a nomination is made:
- The trustee of the trust will be assessed at general rates for pre-2006 land,
- The nomination remains in force until the nominated beneficiary revokes it by written notice given to us, or the nominated beneficiary dies,
- The nomination takes effect for the year after which it is lodged, and
- If the nomination was revoked, the form will only be accepted if we are satisfied that the subsequent nomination is just and reasonable in the particular case.
Gather required information
You need the following information to complete the Discretionary Trust Nomination of Subsequent Beneficiary (LTX Trust Form 15), but refer to the form for specific instructions:
- Details of the trust, including Australian Company Number (ACN)/Australian Business Number (ABN) of the trustee (if applicable),
- Details of the nomination,
- Details of the subsequent nominated beneficiary including State Revenue Office customer number if it is known,
- If the reason for the subsequent nomination is that the previous nominated beneficiary died, details of the previous nominated beneficiary, and
- If the reason for the subsequent nomination is a revocation of the previous nomination, the trustee must outline the reason(s) for the revocation of the previous nomination.
Complete the relevant form
The nomination form is completed online. When you have completed the nomination form, download, print and sign a copy of the completed form.
The form must be signed prior to lodging with us.
Lodge your nomination
Email the signed and completed form with any supporting documents.
Mail the signed and completed form with any supporting documents to:
State Revenue Office
GPO Box 1641
MELBOURNE VIC 3001
State Revenue Office
We contact you in writing to advise you of the outcome of your nomination.