Trust Formation & Tax
What We Do
Trusts remain one of the most widely used structures in Australia for holding business interests, investment assets, and family wealth. We establish and administer discretionary trusts, unit trusts, and family trusts — handling everything from initial trust deed preparation and ATO registration through to annual tax returns, distribution resolutions, and ongoing compliance with trustee obligations.
Trusts serve different purposes depending on the circumstances. A discretionary trust offers flexibility in how income and capital are distributed among beneficiaries, making it a common choice for asset protection and tax-efficient income allocation. Unit trusts provide a fixed entitlement structure suited to joint ventures and co-ownership arrangements. Family trusts — typically discretionary trusts with a family trust election — are used extensively for intergenerational wealth management and succession planning. We advise on the right structure, establish it properly, and manage the administration so it continues to operate within the rules.
Trustees carry personal liability for the administration of the trust. The ATO actively monitors trust distributions, streaming arrangements, and compliance with Division 6 and the trust loss provisions. Getting the annual distribution resolution right — and lodging it on time — is not a formality. It determines the tax outcome for the entire year.
What This Covers
Discretionary Trust Establishment
Trust deed preparation, trustee appointment, ATO registration, ABN and TFN applications, and bank account setup for new discretionary trusts.
Unit Trust Establishment
Unit trust deed drafting, unit holder agreements, fixed entitlement documentation, and establishment of the trust with the ATO.
Family Trust Formation
Establishment of family trusts including trust deed preparation, family trust election lodgement, and structuring for income distribution and asset protection.
Trust Tax Returns
Preparation and lodgement of annual trust tax returns, including income schedules, capital gains calculations, and franking credit distributions.
Distribution Resolutions
Drafting and execution of annual distribution resolutions before 30 June, including income streaming resolutions for capital gains and franked dividends.
Trust Deed Review & Amendment
Review of existing trust deeds for currency and compliance, preparation of deed amendments, and variation of trust terms where required.
Trustee Compliance
Guidance on trustee duties, record-keeping obligations, related party transactions, and compliance with the trust deed and relevant legislation.
Trust Accounting & Administration
Maintaining trust financial records, preparing annual financial statements, tracking beneficiary entitlements, and reconciling trust distributions.
Family Trust Elections
Preparation and lodgement of family trust elections and interposed entity elections, including analysis of the family group and distribution consequences.
Why It Matters
A trust that is established correctly and administered properly provides genuine benefits — flexible income distribution, asset protection from creditors, and a framework for passing wealth between generations. A trust that is poorly administered creates the opposite: unintended tax liabilities, invalid distributions, and personal exposure for the trustee.
The ATO has increased its scrutiny of trust arrangements in recent years, particularly around discretionary trust distributions to low-income beneficiaries, trust streaming, and the application of Section 100A. The compliance standard is not static — what was acceptable five years ago may attract attention today. Proper administration is what separates a trust that works from one that creates problems.
Our Approach
Our trust services follow a structured process from establishment through to ongoing administration:
Structure Selection
We assess the commercial purpose, beneficiary requirements, asset protection considerations, and tax implications to determine whether a discretionary trust, unit trust, or hybrid structure is appropriate.
Trust Establishment
Preparation of the trust deed, appointment of trustees, ATO registration, and establishment of the operational framework — bank accounts, accounting records, and compliance calendar.
Ongoing Administration
Maintaining financial records, processing transactions, tracking beneficiary loan accounts, and ensuring the trust operates in accordance with its deed throughout the year.
Annual Compliance
Preparing distribution resolutions before 30 June, completing annual financial statements, and lodging the trust tax return with the ATO within required timeframes.
Review & Adjustment
Periodic review of the trust structure, deed provisions, and distribution strategy to ensure alignment with current legislation, ATO guidance, and the changing circumstances of the beneficiaries.
Applied Across Industries
Trusts are used across virtually every industry in Australia. The structure is the same — the application varies depending on the assets held, the nature of the income, and the composition of the beneficiary group.
Real Estate
Property investment trusts, development trusts, and land holding structures for individuals and family groups
Professional Services
Service trusts, practice trusts, and income distribution structures for professional practitioners
Construction
Asset protection trusts, equipment holding trusts, and project-based joint venture structures
Food & Agribusiness
Farming trusts, primary production income distribution, and intergenerational succession structures
Healthcare
Medical practice trusts, service entity structures, and asset protection for healthcare professionals
Technology
IP holding trusts, investment trusts for tech founders, and structures for equity and venture income
Discuss Your Trust Requirements
Whether you are establishing a new trust, reviewing an existing structure, or need ongoing administration and compliance support, we can discuss how our trust services apply to your situation.