R.C. Land Management Pty Ltd v Commissioner of State Revenue [2026] VSC 49
Executive Summary
The Victorian Supreme Court set aside the State Revenue Office (SRO) aggregated trust land tax assessments for 2018–2023 across eight land parcels. The Court ordered the Commissioner to issue separate, non-aggregated land tax assessments under section 46G (discretionary trust ownership), rather than section 38 (joint owners) or section 46A (general trust ownership), recognizing 50% split beneficial ownership between two separate discretionary trusts (Ross Property Trust and P. Colleluori Property Trust).
Statutory Provisions & Authorities
Core Judicial Findings & Ratio Decidendi
- R.C. Land Management Pty Ltd held eight parcels of land in separate capacities as trustee for two distinct discretionary trusts.
- The SRO incorrectly aggregated the land holdings under s 38 or s 46A, imposing punitive grouped land tax.
- The Supreme Court confirmed that land held by a trustee for separate discretionary trusts must be assessed separately under s 46G, preventing unlawful tax aggregation.
Victorian land tax aggregation rules can dramatically inflate land tax liabilities due to steeply progressive tax brackets and trust surcharge rates.
Where multiple trusts hold undivided shares or land parcels through a common corporate trustee, establishing clear evidence of separate trust capacities is vital to mandate separate s 46G assessments.
Separate Discretionary Trusts with Common Corporate Trustee = Separate Assessments under s 46G (Non-Aggregated)Actionable Implications for Solicitors, Accountants & Advisers
- •Audit SRO land tax assessment notices where corporate trustees hold land for multiple family or property trusts.
- •Ensure contracts of sale and trust acquisition notices accurately identify the specific capacity and proportions held for each trust.
Trust Land Holding & Victorian Land Tax Compliance
Order solicitor-prepared documents aligned with this precedent.
https://www.tlegal.com.au/precedents/rc-land-management-ross-property-trust-land-tax