A trust is a structure whereby a trustee carries out the business on behalf of the trust’s members (or beneficiaries). A trust is not a separate legal entity. A trustee may be an individual or a company. The trustee is legally liable for the debts of the trust and may use its assets to meet those debts. A trust is set up through a trust deed and there are two main types: discretionary or unit trusts. Please visit our business setups page for further information. Below you can view our trust tax procedure, ATO trust resolution requirements, our fees, and how you can request our team to assist with your trust tax affairs.
If you run your business (or investments) through a trust structure, it is an ATO requirement that a trust distribution resolution be prepared prior to the close of the current financial year. This document must declare the beneficiaries of any income during the Financial Year and it must be signed prior to 30 June in order to be effective for income tax purposes. If a Trustee fails to make a resolution to distribute the income of the Trust before the end of the financial year, the Trustee may be assessed by the Australian Taxation Office (ATO) on the Trust income at the highest marginal tax rate of 47%, rather than the intended beneficiary(s) being taxed.
Our team offer the below services in order to assist you with this ATO requirement:
Basic trustee resolution: $165 inc GST*
- Your situation is straightforward.
- We have your trust deed on file (or if we don’t you can send it to us).
- The trust distribution will be simple and likely involve 2 adult beneficiaries, neither working elsewhere, commonly at a distribution % of 50/50.
Detailed trustee resolution: $300 inc GST*
- Your situation is more complex.
- You require our team to review your files and assist with tax planning.
- We have your trust deed on file ( or you will supply this if we do not ).
- The distribution will involve 2 or more beneficiaries in a variety of circumstances.
*If we anticipate that there will be additional time required to prepare your resolution we will let you know by way of an additional quote.