Why Trustees Must Notify the SRO When Acquiring Land
By Ally Hornibrook and Chantelle Shepherd
Under Victorian law, the State Revenue Office (SRO) must be notified whenever a trust, through its trustee, acquires any interest in land.
This requirement applies even in situations that seem straightforward, such as when a trustee purchases land that they previously held as trustee of a different trust. In other trust arrangements, the trustee is not always recorded on the title of the property, and the SRO must be correctly notified in these instances.
The key point is simple: if a trustee acquires land, the SRO must be informed.
The Consequences of Failing to Notify the SRO
Trustees have one month from settlement to notify the SRO. Missing this deadline can have serious financial repercussions.
If notification is not provided within the required timeframe, the SRO may impose penalty tax on any amount of additional land tax that should have been assessed. This can lead to substantial unexpected liabilities and illustrates just how significant the impact can be when a trustee overlooks this step.
Why This Obligation Matters
For professionals acting on behalf of clients - particularly accountants, lawyers, and advisers involved in property transactions - ensuring this notification is completed is essential.
Failing to notify the SRO is not a minor oversight. It can expose clients to severe financial penalties and create compliance issues that are entirely avoidable.
Are you a Trustee acquiring land?
Whether you are purchasing land for a new trust, transferring property between trusts, or acting as an adviser to someone who is, timely notification to the SRO protects you from avoidable penalties and ensures the trust’s land tax position is correctly assessed from the outset.
Our team regularly assists trustees, accountants, and legal practitioners with navigating these obligations and lodging the correct documentation, including the SRO’s notification of trust acquisition form.
If you are acting as trustee and planning to acquire land, or if you simply want to confirm your compliance position, we can guide you through each step with clarity and precision.
Head to our ‘Contact Us’ page and fill in the inquiry form to ensure your trust acquisition is handled correctly and compliantly.
