Trust Tax Return Services | Experienced Tax Agent Sydney

Trust Tax Services - Tax Agent Sydney

A trust is a popular structure for family businesses and investment purposes because of its flexibility in distributing income. The trustee holds assets for the benefit of beneficiaries, and profits are generally taxed in the hands of those beneficiaries at their marginal tax rates. This allows for income splitting among adult beneficiaries, which can reduce the overall tax burden.

What’s Included in Our Trust Tax Return Service

We offer a comprehensive, end-to-end service for trust tax compliance, tailored to your trust structure and financial goals:

Preparation & Lodgment of Annual Trust Tax Returns
Trust Income Allocation to Beneficiaries
Capital Gains Tax (CGT) Calculations and Streaming
Franking Credits and Dividend Streaming
Trust Loss Rules and Carry-Forward Strategies
ATO Compliance and Audit Support
Review of Trust Deeds for Tax Implications

Key Tax Benefits of Trusts:

50% CGT discount on assets held for more than 12 months (when distributed to individuals).
Ability to stream capital gains and franked dividends to specific beneficiaries if the trust deed allows.
Asset protection when combined with a corporate trustee.

Limitations of Trusts:

Undistributed income is taxed to the trustee at the top marginal rate (currently 47%).
Losses are trapped in the trust and cannot be distributed; they can only offset future trust income if trust loss rules are satisfied.
Distributions to minors attract penalty tax rates, so income splitting is generally limited to adults.

Best for: Families or groups wanting flexibility, CGT benefits, and asset protection, but not planning to retain profits within the structure.

Tax Treatment of Different Trust Types

Understanding how each trust type is taxed is key to staying compliant and optimising distributions. Here's a quick breakdown:

Trust Type	Key Features	Tax Treatment	Common Uses
Family Trusts (Discretionary)	- Trustee distributes income at discretion - Can elect Family Trust status	- Beneficiaries taxed at individual marginal rates - Undistributed income taxed at top marginal rate	Family wealth management, tax planning
Unit Trusts	- Fixed unit holdings - Income distributed proportionally	- Unit holders taxed on their share - CGT applies on asset/unit disposal	Property investment, joint ventures
Hybrid Trusts	- Mix of discretionary and unit trust features	- Tax treatment varies by structure - Requires careful planning to avoid ATO scrutiny	Flexible investment structures
Testamentary Trusts	- Created via a will - Activated upon death	- Beneficiaries (incl. minors) taxed at adult rates	Estate planning, asset protection
Bare Trusts	- Trustee holds assets for one beneficiary - Common in SMSFs	- Beneficiary taxed directly on income and capital gains	SMSF property arrangements, simple asset holding

Trust Tax Return - What We Do

We provide end-to-end assistance for small business owners and investors who need their Trust Tax Return prepared and lodged:

Prepare your Accounts – using Xero Software or Elite Ledger
Cashbook Template – Provide a Cashbook Template if you prefer to DIY
Review your ABN income – Review your ABN income and business activity
Capital Gains & Losses – Calculate Capital Gains & Losses for Share Traders and Investors operating from within a Trust structure
Deductions – Identify and claim deductions all eligible business & investment expenses
ABN setup & GST Registration – Help with ABN setup & GST Registration ensuring compliance from the start
BAS returns – Reconcile BAS returns for accurate reporting
Depreciation Schedules – Take care of Depreciation Schedules & Instant Asset Write Offs
Motor Vehicle Calculations – Look after Motor Vehicle Calculations & Help you with Logbooks
Closing Stock Accounts – Reconcile Closing Stock Accounts for inventory accuracy
Payroll & Superannuation – Reconcile Payroll & Superannuation to meet employer obligations
Trust Held Investments – Reconcile Trust Held Investments for tax and reporting purposes
Income & Loss Statement – Prepare Income & Loss Statement for financial clarity
Balance Sheet – Prepare Balance Sheet showing your Trust's financial position
Trust Distributions - Prepare all Minutes & Trust Distribution Statements
Trust Tax Return - Prepare & lodge the Trust Tax Return

Trust Tax Information Required Checklist

To prepare and lodge your Trust Tax Return efficiently, we’ll need the following:

Category	Required Documents / Information
Trust Name and ABN	Basic identification details to lodge your return correctly.
Trust Deed	A copy of the deed helps confirm structure and distribution rules.
Trustees & Beneficiaries	Names, addresses, and TFNs for all parties involved in the trust.
Tax Return History	TFN and Prior Year Tax Return – Helps review continuity and carry-forward items.
Financial Statements	A full set including Profit & Loss and Balance Sheet.
Bank Statements	Covering the full financial year to verify income, expenses, assets, and liabilities.
Income Details	Income Details – Including rent, dividends, business income, or other sources.
Capital Gains	From property, shares, crypto, or other asset sales.
Trust Expenses	Accounting fees, property costs, and other deductible items.
Super Contributions	For any employees paid through the trust.
Depreciation Schedules	If applicable, for assets held by the trust.
Carried Forward Losses	Details of any prior year trust losses.
Loans & Finance	Including interest expenses and loan balances.
Distribution Minutes	Resolutions showing how income was allocated to beneficiaries.
Streaming Details	Capital gains or franked dividends streamed from managed funds or other trusts.
ATO Correspondence	Notices or letters received from the ATO during the financial year.

Tip: Ensure on time tax lodgement

The earlier you provide this information, the smoother the process. We’ll review everything for compliance and ensure your trust tax return is lodged accurately and on time.

Some of The Industries We Work With

We work with a diverse range of clients who use trusts for different strategic purposes. Each industry has unique tax considerations, and we tailor our services accordingly:

Rental Property Investors - Discretionary and unit trusts are frequently used for holding investment properties. We support trusts holding residential and commercial properties with rental income reporting, expense deductions, depreciation schedules, and CGT on sales. Income is distributed accurately to beneficiaries, with full compliance and clear documentation.
Property Developers - Usually a new Trust is setup for each address that is being developed and sold off. Developers are in the business of development and as such Development trusts face unique tax and GST challenges. We assist with GST registration, margin scheme application, and trading stock treatment, ensuring profits are recognised correctly and distributed tax-effectively across beneficiaries.
Full-Time Share Traders - Traders using trusts need business-level tax treatment. We classify trading income correctly, maximise deductions for trading expenses, and manage wash sale compliance to avoid disallowed losses. Distributions are structured to reduce tax and audit risk.
Share Trading Investors - For long-term investors, we handle CGT on disposals, dividend and imputation credit flow-through, and accurate beneficiary reporting. Trusts are managed for passive income efficiency and long-term tax planning.

Why Choose Us?

ATO-Registered Tax Agents with years of experience
Tailored Solutions for Trusts of all sizes
Deadline Management to avoid penalties
Transparent Pricing with no hidden fees
Local Expertise - Sydney-based, serving clients Australia-wide
Trusted by individuals, families, small businesses and Investors.

Trust Tax Return