Where land was acquired by a discretionary trust on or before midnight 16 October 2019 the discretionary trust has the option to nominate a designated beneficiary by 31 December 2021.

Why should a designated beneficiary be nominated for a discretionary trust by 31 December 2021?

If a designated beneficiary is nominated for a discretionary trust by 31 December 2021:

• Land tax will be assessed against the land held on behalf of the trust at general land tax rates. The trustee of the trust will be responsible for payment of this land tax; and
• If the designated beneficiary owns other land, the land held on behalf of the trust will also be assessed in their ownership along with any other interests in land that they own. A deduction equal to the land tax assessed against the trustee will apply, reducing the land tax to be paid by the beneficiary by that amount.

The designated beneficiary must:

• be a natural person who is over 18 years of age at the date of nomination; and
• have been a beneficiary of the trust as at midnight 16 October 2019.

How is a designated beneficiary nominated?

Only one designated beneficiary can be nominated. To nominate a designated beneficiary for a discretionary trust, submit the following by 31 December 2021:

• Trust Notification Advice
• Nomination and acceptance as beneficiary for a Discretionary Trust Statutory Declaration (PDF 206KB)

The Trust Notification Advice can also be used to notify RevenueSA where a trust:

• that holds land has been established (a new trust); or
• acquires or disposes of land.

What happens if a designated beneficiary is not nominated for a discretionary trust by 31 December 2021?

If a designated beneficiary is not nominated for a discretionary trust, or if the notice of designated beneficiary is submitted after 31 December 2021, land tax will be assessed against the trust held land at the trust land tax rates.

Does a designated beneficiary need to be nominated for a discretionary trust by 31 December 2021 if the land is currently exempt from land tax?

If the land is currently exempt from land tax, providing the exemption criteria continues to be met the exemption will remain in place.

If the exemption from land tax is removed because the exemption criteria is no longer met and:

• a designated beneficiary has not been nominated for the discretionary trust by 31 December 2021 land will be assessed against the trust held land at the trust land tax rates.
• If a designated beneficiary is nominated by 31 December 2021 the land will assessed at general land tax rates. If the designated beneficiary owns other land, the land held on behalf of the trust will also be assessed in their ownership along with any other interests in land that they own. A deduction equal to the land tax assessed against the trustee will apply, reducing the land tax to be paid by the beneficiary by that amount.

More Information

For more information see our land held on trust page or by calling (08) 8226 3750 (select option 2, then option 3).