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Tax Tips for Trusts in 2023

Tired of worrying about whether your trust is compliant?

Tax Tips for Family or Investment Trusts
Family Trust or Investment Trust Tax Tips

While a trust structure can be worthwhile to protect assets, streamline the tax return process and maximise allowable deductions, they are also complex structures and the ATO has particular interest in making sure the regulations that govern them are adhered to.


The Neill Family Group offers experienced professionals to help manage your trust for you. We have the skills and tools needed to understand the complexities of your structure, whether it be a Family Trust, a Business Trust, a Unit Trust, an Investment Trust or a Discretionary Trust, so that yours runs smoothly and, most importantly, profitably.


Our team will work with you on a personalised strategy to get the best possible outcomes from your Family or Investment Trust.


With our expert management support, we can save you time and money and take away any stress associated with running a complex business or investment vehicle such as a Trust.


So contact us today for an obligation free consultation on how we can assist in managing your Trust!


so what is a Trust?

Whether you have a trust set up for investment or business purposes, there are some common elements to getting ready for the trust’s tax return.


Contrary to popular opinion, a trust is not actually a legal entity; rather, it is a formal relationship between other entities, where one entity holds property for the benefit of another entity, which could be a business or individual.


Because a trust is not a person or business entity, its income is usually taxed differently, although this depends on the setup and type of the trust. But even though the tax return is different, many other administrative aspects are the same as for any taxpaying entity.


Trust Administration

One of the most important administrative tasks to attend to is to hold a formal meeting before midnight on 30 June each year to document the basis of distributions to beneficiaries. This document is called a Trustee Resolution.


Failing to not have a Trustee Resolution signed off by 30 June could result in the Australian Taxation Office assessing the Trust income at a 47% tax rate instead of the beneficiary(s) being taxed at potentially much lower rates.


To avoid this, be sure to prepare and sign a Trustee Resolution before the deadline. If you haven’t already done this for the 2023 financial year, talk to us as soon as possible so we can check your accounts and advise you on the best arrangements for beneficiary distributions.


Record Keeping

The other essential element of trust administration is record keeping. Although a trust may not be a legal taxpaying entity in the same way a person or business is, all records related to income and expenses must be kept for five years after lodgement of the income tax return.


Particularly important are records for any property owned by the trust. If a trust owns multiple properties, you’ll need to separate income and expenses according to each property.

If the trust earns income from overseas interests or investments, all these records must also be kept.


Capital gains, interest earned, and dividends received must also be documented.

The trustee must keep records of the trust deed, trustee contact details, trustee resolutions, statements of assets and liabilities, all business contracts, and for employing trusts, all records relating to wages and superannuation.


Trust Management

Trust management can be complex but well worth the time spent keeping good records to maintain asset protection, streamline the tax return process, and maximise the allowable tax deductions.


We'll help with record keeping, managing investments, checking trust deed compliance, and simplifying the administration. And remember, the ATO has changed the rules around distributions, so we’ll advise you about the best way to allocate income to beneficiaries.


How The Neill Family Group Can Help

Trust management can be a complex and time-consuming task, but The Neill Family Group has you covered with our team of experienced professionals. We understand the intricacies of managing different types of trusts, from Family Trusts, Investment Trusts, Unit Trusts to Discretionary Trusts and everything in between, and can ensure that yours runs smoothly.


Our customized strategy approach enables us to work with you and achieve the best possible outcomes for you. By entrusting your trust management to us, you can save time and money, and eliminate the stress associated with running this complex business or investment vehicle.


Take the first step towards stress-free trust management and contact us today for an obligation-free consultation. Our team is ready to help you make the most of your trust.



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