On this page

This gave gives information about land tax for land held on trust.

We speak your language

English العربية မြန်မာ 简体中文 繁体中文 Hrvatski دری Ελληνικά Chin Hakha Italiano ខ្មែរ नेपाली ﻓﺍﺭﺴﯽ Polski ਪੰਜਾਬੀ پښتو Русский Српски Español Kiswahili Tiếng Việt

Trusts and land ownership

A trust is a legal arrangement where a trustee holds and manages property for the benefit of one or more individuals or entities (known as beneficiaries), according to the terms set out by the trust.

A trust is a relationship, not a legal entity, and cannot own land. The trustee is recorded as the legal owner of the land on the Certificate of Title.

A trustee can be a natural person or a corporation.

View 2025-26 Guide to Legislation: Land Tax - Land Held on Trust.

Back to top

Notification requirements

You must notify RevenueSA within one month if:

  • you acquire any land on trust
  • there is a change to land ownership or trust structure (including when a trust is wound up).
  • there is a change in beneficial interests or unit holdings
  • there is a change related to a deceased estate or exemption from land tax

Important: Interest and penalty tax may apply if you fail to notify RevenueSA within one month of a trust acquiring land or of any changes to the trust.
These charges apply to the additional amount of land tax that would have been assessed had the trustee notified RevenueSA within the required timeframe.

Find out more about interest and penalty tax.

How to notify RevenueSA

  • Use the Trust Notification Advice form.
  • Select advise of new trust or make amendments to a trust previously advised and complete the form.
  • You will need to provide evidence that the trust exists and has purchased or disposed of land.

Evidence of trust relationship

To confirm that land is held on trust, you will first need to provide evidence that the trust exists. You can demonstrate this by providing:

  • a copy of the original executed Deed of Trust in its entirety
  • a copy of any Deeds of Variation, if the original deed has been amended.

Evidence of land purchase

You must also provide documentation that supports that each parcel of land has been acquired on behalf of the trust. This documentation must clearly state the trust name and the property address or Certificate of Title reference.

You must provide a copy of one of the following:

  • Memorandum of Transfer showing that consideration (payment or something of value) was provided by or on behalf of the trust for the land.
  • The tax return most recently completed and lodged with the Australian Taxation Office for the trust, clearly showing the land as an asset of the trust.

If the above documents are not available or do not evidence that the land is held on behalf of the trust, you must provide copies of at least 2 other types of the following alternative documents:

  • Memorandum of Transfer, showing “with no survivorship” or “WNS”
  • Certificate of Title showing “with no survivorship” or “WNS”
  • Signed Minutes of Trust Meeting (or similar), evidencing or discussing the purchase of the land on behalf of the trust
  • Trust Balance Sheet, showing the parcel of land as an asset of the trust
  • Settlement Statement, showing the purchaser as a trustee of the trust
  • Signed Contract of Sale, showing the purchaser as trustee of the trust

Back to top

Land tax rates for trusts

Land held on trust will either be taxed at the trust land tax rates or the general land tax rates, depending on the circumstances.

The 2025-26 land tax thresholds are:

  • General land tax threshold: $833,000
  • Trust land tax threshold: $25,000

General land tax rates apply when:

  • The trust is an excluded trust or is a trust that is not subject to trust tax rates.
  • The trust is a fixed trust and RevenueSA has been notified of all nominated beneficiaries.
  • The trust is a unit trust and RevenueSA has been notified of all nominated unitholders.
  • The trust is a discretionary trust and a designated beneficiary was nominated before 31 December 2021 (for land acquired before 17 October 2019 only).
  • The trustee is a corporation that is part of a corporate group and does not hold the land on behalf of a trust. Find out more about land tax for corporate groups.

Trust land tax rates apply when:

  • The trust does not meet the criteria for assessment at the general rates.
  • The trust is a fixed trust and RevenueSA has not been notified of any beneficiaries.
  • The trust is a unit trust and RevenueSA has not been notified of any unitholders.
  • The trust is a discretionary trust and holds land acquired after 16 October 2019.
  • The trust is a discretionary trust and holds land acquired before on or before October 2019 and a designated beneficiary was not nominated or has been withdrawn.

Find out more about land tax rates and thresholds.

Back to top

Land tax assessment for trusts

When land is acquired on behalf of a trust, the trustee is recorded as the legal owner on the Certificate of Title. If RevenueSA has not been notified that the land is held on trust, it is recorded and assessed under the individual ownership of the trustee or the corporate group where the land is held by a corporate trustee.

Once RevenueSA is notified, the land is reassigned to a trust ownership and assessed separately from any other land the trustee owns outside of the trust. You must notify RevenueSA within one month of acquiring land on trust.

What you need to know:

  • Being a trustee of a trust will not affect your individual land tax assessment - as long as RevenueSA has been notified that the land is held on trust. Land held on trust is assessed separately and not included in your individual ownership.
  • All land owned on behalf of the same trust is combined (aggregated) and assessed based on the total taxable site value of that trust ownership.
  • If you are a trustee for multiple trusts, each trust ownership will be assessed separately and not combined (aggregated) with land held by other trusts for land tax.
  • Trustees of fixed and unit trusts can nominate beneficiaries or unitholders, which may affect the assessment of land tax for those beneficiaries or unitholders. Before making a nomination, careful consideration should be given to its impact on all parties involved - not only the trustee, but also the beneficiaries or unitholders.
  • Discretionary trusts are treated differently depending on whether a designated beneficiary nomination is in place:
    • Some existing discretionary trusts may still have a valid designated beneficiary nomination in place.  This may affect how land is aggregated and assessed for land tax and whether a deduction will be applied to prevent double taxation.
    • Discretionary trusts can no longer nominate a designated beneficiary.

Trust ownership structures can be complex. For specific or unique situations, contact RevenueSA for guidance.

Back to top

Discretionary trusts

In a discretionary trust, the trustee has full discretion to decide how much income or capital each beneficiary receives.

Previously, trustees could nominate a designated beneficiary for land tax purposes. This option is no longer available. While discretionary trusts can still have beneficiaries, RevenueSA no longer accepts designated beneficiary nominations. However, under certain circumstances, an existing designated beneficiary may be replaced with another beneficiary.

Land held in discretionary trusts is taxed differently depending on whether a designated beneficiary nomination is in place and whether the land was acquired acquired on or before 16 October 2019 or after 16 October 2019.

  • Land acquired by the trust after 16 October 2019

    All land acquired by a discretionary trust after midnight 16 October 2019 is assessed at the trust land tax rates.

    There is no exception to this.

    Land tax assessment:

    • The land will be assessed in the trust’s ownership at the trust land tax rates.
    • If there is a land tax liability, a land tax assessment will be issued to the trustee.
    • When there is more than one taxable property in the trust ownership, the site values Link to definition will be added together (aggregated) to determine the total taxable site value.
    • If the total taxable site value is over the land tax threshold, the land tax is distributed proportionally to each taxable property based on its site value.

    Example - Greenleaf Family Trust

    The Greenleaf Family Trust is a discretionary trust that holds two properties, both acquired after 16 October 2019.

    Properties held:

    PropertySite value
    Property A$750,000
    Property B$800,000
    Total taxable site value$1,550,000

    Land Tax Calculation:

    • Using the trust land tax calculator the total land tax for the ownership (based on trust land tax rates): $12,395
    • Distributed proportionally:
      • Property A: $5,997.58
      • Property B: $6,397.42

  • Land acquired by the trust after 16 October 2019

    • All land acquired by a discretionary trust after midnight 16 October 2019 is assessed at the trust land tax rates.

    There is no exception to this, even if:

    • the trustee nominated a designated beneficiary (nominations were only accepted up to 31 December 2021) for other land acquired by the trust prior to midnight 16 October 2019.

    Land acquired by the same trust on or before 16 October 2019

    • If the trustee did not nominate a designated beneficiary, or a nomination was made and has been withdrawn, the land is assessed in the trust’s ownership at the trust land tax rates and a land tax assessment is issued to the trustee if there is a liability.
    • If the trustee did nominate a designated beneficiary before 31 December 2021 and the trust acquired land on or before 16 October 2019, that land is assessed at the general land tax rates in both the trust ownership and the beneficiary's individual ownership.

    The following information assumes a designated beneficiary was nominated and the nomination remains in place.

    If the designated beneficiary owns no other land:

    • Land acquired on or by 16 October 2019 is assessed in the trust’s ownership at the general land tax rates.
    • Land acquired after 16 October 2019 is assessed at the trust land tax rates.
    • Land tax is calculated using a proportional formula (shown below) to account for the different land tax rates.
    • A land tax assessment is issued to the trustee if there is a liability.
    • The beneficiary will not receive a Land Tax Assessment.

    If the designated beneficiary owns other land outside the trust:

    If the designated beneficiary owns other land, the land held in trust is assessed in two stages:

    Stage 1 -  Assessment in the trust ownership

    • Land acquired on or by 16 October 2019 is firstly assessed in the trust’s ownership at the general land tax rates.
    • Land acquired after 16 October 2019 is also assessed in the trust's ownership at the trust land tax rates.
    • Land tax is calculated using a proportional formula (shown below) to account for the different land tax rates.
    • A land tax assessment is issued to the trustee if there is a liability.

    Stage 2 - Assessment in the designated beneficiary's individual ownership

    • All of the land acquired on behalf of the trust on or by 16 October 2019 will also be assessed in the designated beneficiary’s individual ownership, along with any other land or portion of land that they are an owner of.  The beneficiary’s assessment will include a deduction (explained below).
    • If the beneficiary has a land tax liability, a Land Tax Assessment will be issued to them.

    Deduction

    A deduction may apply to the beneficiary's individual assessment to prevent double taxation on the same parcel of land.

    • The deduction reflects the land tax that has already been assessed at the general land tax rates in the trust ownership.
    • It is applied to their individual ownership against the same land.
    • If the trust ownership does not incur land tax, no deduction will be applied in the beneficiary's individual land tax assessment.
    • If the total deductions exceed the land tax assessed, their individual land tax assessment is reduced to zero, and they will not receive an individual land tax assessment.

    Land tax formula

    When a trust holds land acquired before on or 16 October 2019 and has a designated beneficiary nomination in place, and has also acquired additional land after 16 October 2019, land tax is calculated using the following proportional formula:


    Land Tax Assessed = (R1 × T) × (A ÷ T) + (R2 × T) × (B ÷ T)


    Where:

    • R1 is the general land tax rate
    • R2 is the trust land tax rate
    • T is the total taxable site value of all land held by the trust
    • A is the total site value of land held as at midnight 16 October 2019
    • B is the total site value of land acquired after 16 October 2019

  • Land acquired by a discretionary trust on or before 16 October 2019

    Up until 31 December 2021, the trustee of a discretionary trust had the option to nominate a designated beneficiary for land tax purposes. Only one designated beneficiary could be nominated.

    • If the trustee did not nominate a designated beneficiary, or a nomination was made and later withdrawn, the land is assessed in the trust’s ownership at the trust land tax rates and a land tax assessment is issued to the trustee if there is a liability. There is no exception to this.

    The following information assumes a designated beneficiary was nominated and the nomination remains in place.

    If the designated beneficiary owns no other land:

    • The land is assessed in the trust’s ownership at the general land tax rates.
    • A land tax assessment is issued to the trustee if there is a liability.

    If the designated beneficiary owns other land outside the trust:

    If the designated beneficiary owns other land, the land is assessed in two stages:

    Stage 1 -  Assessment in the trust ownership

    • The land is firstly assessed in the trust’s ownership at the general land tax rates.
    • A land tax assessment is issued to the trustee if there is a liability.

    Stage 2 - Assessment in the designated beneficiary's individual ownership

    • The land held on trust is then assessed in the beneficiary’s individual ownership along with any other land or share of land they own, and a land tax assessment is issued to the beneficiary if there is a liability.

    Deduction

    A deduction may apply to the beneficiary's individual assessment to prevent double taxation on the same parcel of land.

    • The deduction reflects the land tax that has already been assessed at the general land tax rates in the trust ownership.
    • It is applied to their individual ownership against the same land.
    • If the trust ownership does not incur land tax, no deduction will be applied in the individual land tax assessment.
    • If the total deductions exceed the individual land tax liability, their individual land tax is reduced to zero, and they will not receive an individual land tax assessment.

  • Trustees could previously nominate a designated beneficiary for land tax purposes. This option is no longer available, but an existing designated beneficiary may be substituted with another beneficiary of the trust in certain circumstances.

    Substituting a designated beneficiary

    You may substitute a designated beneficiary in either of the following circumstances:

    • If the designated beneficiary dies or becomes incapacitated, or
    • If there is an irretrievable breakdown of a marriage, de facto, or domestic relationship, and the designated beneficiary will no longer be a beneficiary of the trust.

    Eligibility

    To be eligible, the new designated beneficiary must:

    • be a natural person
    • have been a beneficiary of the trust as at midnight 16 October 2019
    • be over 18 years of age at the time of substitution, and
    • provide a statutory declaration confirming their consent to become the designated beneficiary of the trust.

    Note:

    • If all the beneficiaries of the trust are under 18 years old, the trustee can be substituted as the designated beneficiary if they are a natural person.
    • There can only be one designated beneficiary for a discretionary trust.
    • A designated beneficiary cannot be a corporation.
    • A person cannot be substituted as a designated beneficiary if they became a beneficiary after 16 October 2019.

    How to substitute a designated beneficiary

    To substitute a designated beneficiary, the new designated beneficiary must submit:

  • Withdrawing the nomination for a designated beneficiary

    Nominations of designated beneficiaries remain in force until they are withdrawn. You can withdraw the designated beneficiary nomination at any time by submitting:

    • The Trust Notification Advice form.
    • Select make amendments to a trust previously advised and complete the form.
    • You will need the ownership number and may need to provide evidence and supporting documentation.

    Important:

    • If you choose to withdraw the designated beneficiary nomination, you cannot lodge a new nomination in the future for any reason.
    • Withdrawing a designated beneficiary will result in the land becoming assessable at the trust land tax rates.
    • The withdrawal of the notice will take effect from the financial year following RevenueSA’s receipt of the withdrawal notice.

  • Exemptions that apply to land held outside a trust ownership can also apply to land held on trust, but some conditions may apply.

    Principal place of residence exemption

    Land held on trust may receive a principal place of residence exemption, or partial exemption, if one or both of the following conditions are met:

    • The trustee, or at least one trustee if there is more than one, resides upon a parcel of land held on behalf of the trust as their principal place of residence
    • The designated beneficiary resides upon a parcel of land held on behalf of the trust as their principal place of residence. The land must have been held by the trust as at midnight 16 October 2019.

    There can be situations where exemptions are granted to multiple parcels of land held in the trust ownership because both of the above conditions are satisfied.

    Find out more about the principal place of residence exemption.

    Other exemptions

    Other land tax exemptions may apply where all relevant criteria have been met.

    Find out more about other land tax exemptions.

    • Back to top

    Fixed and unit trusts

    In a fixed or unit trust, the trustee must distribute the trust's income or capital according to either the beneficial interest of the beneficiaries or the number of units held by each unitholder, but there are some differences in structure and flexibility.

    Fixed trusts: Without amending the trust itself, a fixed trust does not allow other beneficiaries to be added or removed, or for the beneficiaries’ shares or assets in the trust to be changed or reallocated.

    Unit trusts: Unitholders can be changed.

  • If the trustee has nominated all the beneficiaries or unitholders, the land is assessed at the general land tax rates.

    If the beneficiary or unitholder owns no other land

    The land is assessed in the trust’s ownership at general land tax rates and a land tax assessment is issued to the trustee if there is a liability.

    The beneficiary or unitholder will not receive a Land Tax Assessment, except in some situations where the beneficiary or unitholder is also a trustee and land tax is assessed against that trustee at the trust land tax rates.

    If the beneficiary or unitholder owns other land outside the trust

    If a beneficiary or unitholder owns other land, the land held in trust is assessed in two stages:

    1. The land is firstly assessed in the trust’s ownership at the general land tax rates and a land tax assessment will be issued to the trustee if there is a liability.
    2. The beneficiary's or unitholder’s share of the land held in trust is then assessed in their individual ownership along with any other land, or share of land, they own, and a land tax assessment is issued to the beneficiary or unitholder if there is a liability.

    Land tax will be assessed in the ownership of the beneficiary or unit holder at either the general land tax rates or the trust land tax rates depending on the type of entity that the beneficiary or unitholder is.

    Deduction

    Where the trust ownership has a land tax liability, a deduction may apply to the beneficiary’s individual assessment to prevent double taxation on the same parcel of land.

    • The deduction reflects their share of land tax that has already been assessed in the trust ownership.
    • It is applied to their individual ownership against the same land.
    • If the trust ownership does not incur land tax, no deduction will be applied in the individual land tax assessment.
    • If the total deductions exceeds the individual land tax liability, their individual land tax is reduced to zero, and they will not receive an individual land tax assessment.

  • If the trustee has not nominated beneficiaries or unitholders, or has not nominated all beneficiaries or unitholders for a fixed trust or unit trust respectively, land held on trust will be assessed in the trust ownership at the trust land tax rates.

    Important: When a trustee nominates beneficiaries or unitholders for land tax purposes, the nomination must apply to all beneficiaries or unitholders of the trust. Partial nominations are not permitted - the trustee cannot choose specific individuals to include or exclude.

    Land tax assessment:

    • The land will be assessed in the trust’s ownership at the trust land tax rates.
    • If there is a land tax liability, a land tax assessment will be issued to the trustee.
    • When there is more than one taxable property in the trust ownership, the site values Link to definition will be added together (aggregated) to determine the total taxable site value.
    • If the total taxable site value is over the land tax threshold, the land tax is distributed proportionally to each taxable property based on its site value.

  • Nominating a beneficiary or unitholder

    To nominate a beneficiary or unitholder for a fixed or unit trust respectively:

    • Submit the Trust Notification Advice form.
      • Select make amendments to a trust previously advised and complete the form.
      • You will need the ownership number and may need to provide supporting documentation.

    Important:

    • Recognition of beneficiaries or unitholders can take effect from the financial year in which the nomination is received or the following financial year.
    • You will need to advise RevenueSA which financial year you would like recognition of beneficiaries or unitholders to take effect. Unless otherwise advised, RevenueSA’s default position is that the nomination takes effect for the financial year in which the nomination is received.
    • If not included with the Deed of Trust, then documentation that evidences who the unit holders or beneficiaries are (for example, a unit holder register) for each of the relevant financial years must be provided. If there have been no changes to the unit holders or beneficiaries, then only one copy of this documentation is required.

  • Changing a unitholder

    To change a unitholder for a unit trust :

    • Submit the Trust Notification Advice form.
      • Select make amendments to a trust previously advised and complete the form.
      • You will need the ownership number and may need to provide supporting documentation.

    Important:

    • You must notify RevenueSA within one month of any changes to unitholdings.
    • Penalties may apply for failure to notify RevenueSA.

    Fixed trusts

    • It is not possible to change the beneficiaries of a fixed trust without amending the trust itself.

  • Withdrawing the nomination for a beneficiary or unitholder

    Nominations for beneficiaries or unitholders remain in force until they are withdrawn. You can withdraw the beneficiary or unitholder nomination at any time by submitting:

    • The Trust Notification Advice form.
    • Select make amendments to a trust previously advised and complete the form.
    • You will need the ownership number and may need to provide evidence and supporting documentation.

    Important:

    • If you choose to withdraw the beneficiary or unitholder nomination, you cannot lodge a new nomination in the future for any reason.
    • Withdrawing a designated beneficiary will result in the land being assessed at the trust land tax rates.
    • The withdrawal of the notice will take effect from the following financial year.
    • Only the trustee of the trust can withdraw a beneficiary or unit holder nomination for a fixed or unit trust.

  • Exemptions that apply to land held outside a trust ownership can also apply to land held on trust, but some conditions may apply.

    Principal place of residence exemption

    Land held on trust may receive a principal place of residence exemption, or partial exemption, if one or both of the following conditions are met:

    • The trustee or least one trustee if there is more than one resides upon a parcel of land held on behalf of the trust as their principal place of residence
    • All nominated beneficiaries or unitholders reside upon the same parcel of land held on behalf of the trust as their principal place of residence.

    In certain cases, multiple parcels of land held under the same trust may qualify for exemptions if each parcel satisfies one of the above conditions.

    Beneficiaries or unitholders will only qualify for this exemption if they have all been nominated and RevenueSA has been notified.

    Find out more about the principal place of residence exemption.

    Other exemptions

    Other land tax exemptions may apply where all relevant criteria have been met.

    Find out more about other land tax exemptions.

    • Back to top

    Contact us