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 that was 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
- Wishes 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,
- This nomination takes effect for the year in 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- If the nomination was revoked, the form will only be accepted if we are satisfied that the subsequent nomination is just and reasonable in the particular case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 SRO customer number (if 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 provide a letter outlining the reason(s) for the revocation of the previous nomination and the reasons for the nomination of the subsequent beneficiary
Complete the relevant form
The nomination can be completed:
- On screen, printed and signed, or
- Downloaded, printed, completed and signed
Either way, the form must be signed prior to lodgement with us. Please use block letters in blue or black ballpoint pen to complete this form.
Lodge your nomination
You can lodge with us by email or mail.
Email the signed and completed form and any supporting documents as an attachment to email@example.com.
Mail the signed and completed form and any supporting documents to:
State Revenue Office
GPO Box 1641
State Revenue Office
We will contact you in writing to advise you of the outcome of your nomination.