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Land tax in south Australia

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Sharine | 31 Aug 2013, 05:01 PM Agree 0
I have PPOR and one IP. I would like to buy another and according to land tax office, I will still be under the threshhold. The 4th property will be a concern and I have been informed that a trust is the way to go. My accountant says that profit or loss stays in the trust and does not benefit tax. What advice do people have about trusts. I am buying all properties in South Australia. Should I look at buying interstate to avoid a trust and land tax?
  • Eos Property | 01 Sep 2013, 10:24 AM Agree 0
    To me trusts are more about asset protection and any tax advantages are a bonus rather than the purpose for doing. On top of this you need to be aware that a 'trust' can take many forms - when I last looked there were multiple types of trusts and some trust structures and more suited to some individuals than others. Was your accountant talking unit trusts? family trusts? hybrid trusts? etc.

    If land tax is an issue for you - I would not be worried/afraid of looking interstate.

    This also has the added advantage of you being able to ride other property markets. By having all of your eggs in the SA basket it does mean the performance of your portfolio is very dependent on the SA market and economy.
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