Victorian Consolidated Legislation

Land Tax Act 2005 - SECT 46G

Land tax for discretionary trust with nominated beneficiary

46G. Land tax for discretionary trust with nominated beneficiary



(1) This section applies if the nomination of a nominated beneficiary for a
discretionary trust is in force under section 46F.

(2) The nominated beneficiary is deemed, for the purposes of this Act (other
than Division 1 of Part 4) but for no other purpose, to be the owner of the
pre-2006 land subject to the trust (but not to the exclusion of the trustee)
and is to be assessed for land tax on that land accordingly, together with any
other taxable land owned by the nominated beneficiary.

Note The rate of land tax for this assessment is the applicable rate set out
in Part 1 of Schedule 1.

(3) The trustee of the trust is to be assessed for land tax on the whole of
the land subject to the trust as if the land were the only land owned by the
trustee-

   (a)  in respect of any pre-2006 land-at the applicable rate set out in Part
        1 of Schedule 1; and

   (b)  in respect of any post-2006 land-at the applicable rate set out in
        Part 3 of Schedule 1.

(4) For the purposes of subsection (3), if the trust property includes both
pre-2006 land and post-2006 land, the trustee is to be assessed in accordance
with the following formula-

where-

L is the land tax assessed for the trustee;

R1 is the applicable rate of land tax set out in Part 1 of Schedule 1;

R2 is the applicable rate of land tax set out in Part 3 of Schedule 1;

T is the total taxable value of all taxable land subject to the trust;

A is the total taxable value of the pre-2006 land subject to the trust;

B is the total taxable value of the post-2006 land subject to the trust.

(5) There is to be deducted from any land tax payable by the nominated
beneficiary under subsection (2) any land tax payable by the trustee under
subsection (3) in respect of pre-2006 land.

(6) Subsection (2) does not apply if the nominated beneficiary is the trustee.