Wis Australia’s Tax Team Facilitates NSW Government Update to Its Land Tax Exemption Guidelines — Professional Expertise Driving Real Change
- Ron
- Nov 21, 2025
- 2 min read
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Recently, while reviewing the New South Wales Australian-based Developer Exemption for surcharge land tax on behalf of a client, we identified inconsistencies between the description of “Land held in trust” on the Revenue NSW website and the actual legislative provisions. As this discrepancy could directly impact the exemption assessment for development projects held through trust structures, we conducted a detailed technical analysis and raised a formal query with Revenue NSW after discussing the issue with our client.
The original wording on the Revenue NSW website at the time (excerpted) was as follows:
After comparing the website content against the Land Tax Act 1956 (NSW), Duties Act 1997 (NSW), Revenue Ruling G 013 v2, and section 5C of the Land Tax Act, we confirmed that the legislation does not require trustee companies to be listed under Schedule 8AA of the Corporations Regulations 2001, nor does it require the trustee to hold an Australian Financial Services Licence (AFSL). These two additional requirements listed on the website therefore exceeded what the law mandates and could have led taxpayers to incorrectly assume that they were ineligible for the exemption.
Given this divergence, we submitted a technical inquiry to Revenue NSW, requesting clarification of the legislative basis or correction of the public guidance. After considering our submission, Revenue NSW responded as follows:
“The information on our website has been updated under ‘Land held in trust’, thank you for bringing this to our attention.”
“If a trust applies for an Australian-based developer exemption, the trustee company is considered to fall within the scope of Australian corporations for this purpose.”
From this response, it is clear that the extra Schedule 8AA and AFSL requirements have now been withdrawn. Revenue NSW subsequently removed the incorrect statements from its website and reinstated wording consistent with the legislation. This update not only enables our client to accurately assess eligibility but also provides greater clarity to the wider industry and reduces the risk of misinterpretation or unnecessary compliance concerns.
This experience reinforces an important principle: while government website guidance is useful, major tax positions must ultimately rely on the legislation and binding rulings. Our team will continue to maintain a rigorous and analytical approach, promptly identifying discrepancies between public guidance and the law, and engaging constructively with regulators where appropriate. Contributing to improvements in official guidance is a meaningful outcome for our clients, the industry, and market transparency.
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If your business requires further analysis regarding land tax, trust structures, or the Australian-based developer exemption, we would be pleased to provide technical advice and strategic support.
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