The new Land Tax Act 2005 (New Act) came into effect on 1 January 2006. You will recall that the New Act:
- is a rewrite of the 1958 Act;
- introduced new tax rates to Victorian taxable land;
- applies a surcharge rate of land tax to Victorian taxable land held in some trusts.
The surcharge in respect of Victorian taxable land does not apply, however, in respect of land held by complying superannuation funds, as these constitute "excluded trusts".
Practitioners should be aware, however, that just because these trusts are excluded, the trustees must still notify the SRO that the land is held in a trust by 31 March 2006. SMSF trustees must still, therefore, lodge a "Notification of Lands Held on Trust" form, which form allows the trustees to notify the SRO of the category by which the land is excluded from the surcharge rate.
Trustees of trusts holding land as at 31 December 2005, and which are not excluded, then have until 30 June 2006 to make any nominations (in the case of discretionary trusts) or notifications (in the case of fixed and unit trusts) that they deem necessary.