The parliament passed the State Revenue Legislation Further Amendment Act 2020 which became law on 24 June 2020.
The provisions of this Act apply the foreign residents surcharge to discretionary trusts including testamentary discretionary trusts which own residential property, where a beneficiary is or could become a “foreign resident”. Thus, if a trust with a “foreign resident” beneficiary is to purchase a residential property, there is a surcharge on the stamp duty which is currently 8% of the market value of the property with land tax payable each year with a surcharge of 2% of the unimproved value of the property determined by the Valuer-General.
For the purposes of this Act, the definition of a foreign resident is important. Australian citizens including those who hold dual citizenship, whether ordinarily resident in Australia or not, are excluded from the definition of foreign resident completely. Any permanent resident holding a visa with no time limitation and has spent 200 days in Australia of the preceding 12 months is also excluded as a foreign person. For companies and businesses, the situation must be considered on their particular merits but as a guide, a less than 5% holding by a foreign resident in a listed or an unlisted company is usually disregarded.
The Act assumes that all discretionary trusts have foreign resident beneficiaries. To gain an exemption from the surcharge, the trust deed must contain an irrevocable clause excluding any foreign beneficiary. These provisions came into effect on 24 June 2020. However, the Act allows for trustees to with trusts owning residential property, to amend with an irrevocable clause excluding foreign resident beneficiaries and produce the amended trust deed with a declaration to Revenue NSW before midnight on 31 December 2020. If your trust deed had been amended and the foreign resident surcharge has been paid for a transaction on or after 21 June 2016, the Commissioner will accept applications for refunds up to 23 December 2020 for consideration.
Testamentary trusts that arise when the deponent dies via a will should be re-examined to ensure that any constructive testamentary trust which is created holding residential property either complies for the exemption or that the costs of the surcharge are considered to ensure bloodline bequeathing of residential property. Perhaps it may be appropriate that the assets of a will should be devised via two trusts, one to hold residential property and the other to hold other assets, to ensure the appropriate asset preservation.
As each situation is individual, your particular circumstances will determine the course you need to take. Whilst the main implications of the changes are set out above, only an examination of the aims of constructive trust can reveal what action needs to take place.
If you or any know need further assistance do not hesitate to contact me.
Have a wonderful day,
Jeffrey
0419 233 670
[email protected]
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ps. I am available to discuss matters either in my office or by Zoom conference; and
provide notary services which must be in person.
早上好
议会通过了《2020年国家税收立法进一步修正法案》，该法案于2020年6月24日生效。
本法规定所有全权委托信托都有，包括受益人是否可能成为“外国居民”的拥有住宅财产的遗嘱全权委托信托。因此，如果一个信托受益的“外国居民”购买住宅物业，则需缴纳附加印花税，目前印花税为该物业市场价值的8%，每年应缴纳土地税，土地税为估价师确定的该物业土地价值的2%。
就本法而言，外国居民的定义很重要。澳大利亚公民，包括持有双重国籍的人，无论是否通常居住在澳大利亚，都完全不属于外国居民的定义。持有无时间限制签证并在过去12个月内在澳大利亚逗留了200天的永久居民也被排除在外。对于公司和企业，必须根据其具体情况加以考虑，但作为指导，外国居民在上市公司或非上市公司所持股份低于5%的情况通常不予考虑。
该法假定所有自由裁量信托都有外国居民受益人。为了免除附加费，信托契约必须包含一个不可撤销的条款，排除任何外国受益人。这些规定于2020年6月24日生效。然而，该法案允许受托人与信托拥有住宅财产，修改一项不可撤销的条款，不包括外国居民受益人，并在2020年12月31日午夜前向新南威尔士州税务局申报经修订的信托契约。如果您的信托契约已被修订，并且已为2016年6月21日或之后的交易支付了外国居民附加费，专员将接受在2020年12月23日前的退款申请，以供考虑。
当立遗嘱人死亡时产生的遗嘱信托应重新审查，以确保持有住宅财产的建设性遗嘱信托既符合豁免要求，或者附加费的成本被视为确保住宅财产的血缘遗赠。也许，遗嘱中的资产应该通过两个信托进行设计，一个信托持有住宅物业，另一个持有其他资产，以确保适当的资产保全是合理的。
由于每种情况都是因人而异，你的具体情况将决定你需要采取的方法。虽然上述变化的主要影响已阐明，但只有对建设性信托的目的进行审查，才能揭示出需要采取哪些行动。
如果您或任何人知道需要进一步的帮助，请随时与我联系。
祝你有美好的一天，
蔡福荣Jeffrey
0419 233 670
[email protected]
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另外，我可以在我的办公室或Zoom会议上讨论事宜；公正服务必须当面进行。
If you need help regarding Constructive Trusts and Foreign Beneficiaries in Sydney, NSW please make an appointment by ringing me on my mobile or emailing me. I am available during office hours at my city office or after hours and weekends at my Riverwood office.
