NSW Land Tax Strategy
Corporate Consolidation of Unit Trust

From unit trust to company — the 90% concession pathway

A company holding land in NSW is taxed on the general threshold basis — with the threshold deduction available, unlike a special trust. Where a unit trust cannot be converted to a compliant fixed trust structure, or where commercial factors make a company a better long-term holding vehicle, the corporate consolidation strategy moves the property into a company using the NSW 90% reconstruction concession.

From 1 February 2024, the NSW corporate reconstruction exemption was reduced from a full exemption to a 90% concession. The one-off duty cost must be weighed against the ongoing annual land tax saving — for most properties above $2 million, the payback period is typically 1–2 years.

• Company holds the property — eligible for the general threshold deduction (not the special trust flat rate)
• Annual land tax saving of up to $17,200+ per property (subject to land values)
• The 90% concession means some residual duty is payable — the net saving must be modelled for each property
• Valuation evidence required by Revenue NSW to support the concession application
• Income tax consequences of the transfer must be assessed — potential CGT event on transfer
• GST position on the transfer must be confirmed — going concern exemption or taxable supply?
• The company must be a related entity to the unit trust for the reconstruction concession