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31 December 2020 deadline for NSW - Exclusion of foreign persons in a discretionary trust
We want to remind you that the deadline for Exclusion of foreign persons in a discretionary trust is midnight, 31 December 2020 – that’s only 5 weeks away!
The State Revenue Legislation Further Amendment Act 2020 (NSW) received royal assent on 24 June 2020 and amends the Land Tax Act 1956 (NSW), Land Tax Management Act 1956 (NSW) and the Duties Act 1997 (NSW) to deem a discretionary trust as 'foreign' for the purposes of surcharge land tax and surcharge duty, unless the trust prevents any foreign person from being a potential beneficiary of the trust (i.e. by irrevocably amending its trust deed).
It is important to note that Victorian and Queensland discretionary trust deeds may be in a similar position as NSW, so if you are in any doubt or if you have clients needing to amend NSW discretionary trust deeds prior to the 31 December deadline, please contact us on 02 8296 6266 or click here for our online document package which includes all of the necessary documents.