Beware 2% Surcharge Land Tax May Apply
Do you own residential property in NSW via a trust or company structure? Then you need to consider whether the Foreign Person’s Land Tax Surcharge may apply to your residential property. Now before you think “I’m Australian, this doesn’t apply to me” for the purposes of this surcharge the definition of a foreign person is not limited to individuals but also extends to family trusts, unit trusts and companies.
The Foreign Person’s Land Tax Surcharge is 2% surcharge payable in addition to any Land Tax you are liable for in NSW. Foreign Persons Land Tax Surcharge applies when a ‘foreign person’ has an ownership interest in residential land in NSW or could potentially receive a dividend or distribution from a company or family trust . As Land Tax in NSW is assessed at 31 December each year, we urge you to act as soon as possible to avoid the surcharge being assessed at 31 December 2019.
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If you would like to discuss this please feel free to contact our office on 4227 6744.