Setting Up a Family Trust in Australia: Benefits, Structure & Compliance
A family trust can provide asset protection, tax planning benefits and flexible distribution of income to beneficiaries. Here’s a five-step guide to establish and maintain your trust under Australian law.
1. Choose the Right Trust Type
Common options include a discretionary (family) trust—where the trustee decides distributions each year—and a unit trust, which fixes beneficiary entitlements by unit holdings. Consider your family’s goals, asset base and tax position.
2. Draft the Trust Deed
Engage a specialist lawyer to prepare the trust deed. It must specify:
- Name of the trust
- Trustee’s powers and duties
- Beneficiary classes (family members, children’s trusts)
- Trust duration (up to 80 years in most states)
3. Appoint Trustee(s) & Beneficiaries
The trustee (individual or corporate) holds legal title and manages trust assets on behalf of beneficiaries. Choose someone trustworthy and consider appointing a corporate trustee for continuity and limited liability.
4. Register for ABN, TFN & GST
Within 28 days of establishment, register the trust with the ATO for an ABN and TFN. If annual turnover exceeds the GST threshold, you’ll also need to register for GST and lodge Business Activity Statements.
5. Ongoing Compliance & Reporting
Each financial year, the trustee must:
- Hold a distribution resolution before 30 June
- Prepare and lodge a trust tax return
- Maintain minutes, trustee resolutions and financial records
Need Help with Your Trust Setup?
Contact LawWise Australia for expert drafting of trust deeds, trustee advice and ATO compliance support.
Post Insights
- Estimated CPC: AUD 2.00–4.00
- Affiliate Opportunities: LawPath family trust deed kit, LegalVision trust establishment package, Xero accounting for trusts
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