Whilst excluded trusts may have various interests in land arising by way of:

  • being the sole owner;
  • being a joint owner;
  • having beneficial interest(s) in any number of fixed trusts, where a notification of beneficial interest is in force; or
  • being a unit holder in any number of unit trusts, where a notification of unit holdings in the trust is in force;

only land of which they are the sole owner will be aggregated for the purposes of assessing land tax at the general rates of land tax (and not the trust rates of land tax). Consequently, an excluded trust will not receive a separate notice of assessment that includes its share of joint holdings.

The following are excluded trusts:

  • charitable trusts;
  • concessional trusts (for example, established for a person who has a disability or is subject to a guardianship or administration order);
  • a trust the sole beneficiary or beneficiaries of which is or are an association referred to in Section 4(1);
  • a trust, for any tax year in relation to which it is a superannuation trust;
  • a trust established by a superannuation trust solely for the purposes of an arrangement of a kind authorised under Section 67A of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth;
  • a trust that holds child maintenance land. Child maintenance land is land held on trust that was transferred to the trustee for the benefit of a beneficiary as the result of a family breakdown within the meaning of Section 102AGA of the Income Tax Assessment Act 1936 of the Commonwealth; and
  • an administration trust.

Excluded trusts: concessional trusts

A concessional trust is:

  • a trust of which each beneficiary is—
    • a person in respect of whom a guardianship order or an administration order is in force under the Guardianship and Administration Act 1993; or
    • a person with a disability within the meaning of the Disability Services Act 1993; or
  • a trust created under an order of a court or tribunal, or otherwise created under an Act, for the benefit of a person under disability; or
  • a special disability trust (within the meaning of Section 5); or
  • a trust of a kind prescribed by the regulations.

Excluded trusts: superannuation trusts

A superannuation trust is, in relation to a financial year, a trust established before the start of the financial year that, in relation to the year of income ending in that financial year, is:

  • a complying superannuation fund (within the meaning of Section 42 or 42A of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth); or
  • a complying approved deposit fund (within the meaning of Section 43 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth); or
  • a pooled superannuation trust (within the meaning of Section 44 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth).

Example 5 – land held on trust

Land valued above the taxable threshold is owned in equal shares by (1) Ms Jones and (2) Jones Co Pty Ltd as trustee of the Jones Super Fund (the “Super Fund”). Both owners each own other land solely.

The joint owners are assessed together at the general rate of land tax.

Ms Jones will be assessed at the general rates of land tax on her individual interest in the jointly owned land and the other land she owns. Any assessment issued to her will also include a joint ownership deduction.

However, as an excluded trust, the Super Fund’s interest in the joint ownership will not be aggregated for the purposes of assessing land tax. The trustee for the Super Fund will only receive a notice of assessment for the other land it owns solely.

Excluded trusts: administration trusts for deceased estates

An administration trust is a trust under which the assets of a deceased person are held by a personal representative, but only during the period ending on the earlier of:

  • the completion of administration of the deceased estate; or
  • the third anniversary of the death of the deceased person or a further period (if any) approved by the Commissioner in any particular case.

A trustee of an administration trust must notify RevenueSA within one month after probate has been granted, or letters of administration have been issued, in relation to the deceased estate.

Similarly, the trustee must notify RevenueSA within one month of the completion of the administration of a deceased estate.