Which is Better for Land Tax and CGT Concessions Where a Group Acquires Property in Victoria?

The choice is made out of a Unit Trust or a Partnership. 

• A Partnership has each person holding a part interest in the land proportionate to their entitlement.  As such CGT discount flows to the part owner directly.  For land tax the partnership is assessed as if it were an individual then a look through to each part owner who may receive a credit on any land tax paid by the partnership:  https://www.sro.vic.gov.au/joint-owners
• For a Unit Trust, the CGT concessions are within the trust and there is also concessions if the units are disposed of.  For land tax surcharge rates apply from $25,000 onward: https://www.sro.vic.gov.au/land-tax-current-rates#trust-surcharge-rates The system of applying land tax is similar to a partnership if chosen by the Trustee however the tax rates are higher.

Please be advised this is general information only, and is not to be taken as legal advice. If you would like more information, or have a legal query, please contact Abbott & Mourly directly.
Reviewed: 17/01/2024