If you’re thinking about how to register a trust in Australia, you’re definitely on the right track. Trusts are a clever way to protect your hard-earned assets, manage your family’s wealth, and plan for the future. But let’s admit it, at first, the entire procedure may seem a little intimidating. For this reason, we are here to walk you through everything step-by-step in a straightforward and understandable manner.
Registering a trust in Australia can be a huge help, whether you’re an investor, small business owner, or just someone who wants to keep things organised for your family in the future. It’s not just for the big players; everyday Aussies all over the country use trusts to keep their finances secure and well-managed.
At ISM Accountants, we’ve helped heaps of people just like you register trusts that fit their unique needs. We know the ins and outs of the law, the tax side of things, and how to make sure everything’s done properly, so you don’t have to stress.
In this guide, you’ll learn what a trust actually is, the different types you can choose from, why you might want one, and exactly how to register a trust in Australia the right way. Plus, we’ll answer some common questions along the way. Ready? Let’s dive in.
What Is a Trust?
A trust is a legal arrangement where someone holds assets for the benefit of others. Simply put, it’s a structure where a trustee—either a person or a company—manages assets like money, property, or shares on behalf of the beneficiaries, who are the people meant to benefit from the trust. The trustee doesn’t own these assets personally but looks after them according to the rules set out in a legal document called the trust deed.
Trusts are popular because they offer great flexibility in managing and protecting your assets. They’re also a smart tool for tax planning and help ensure your wealth is passed on smoothly to the right people when the time comes. If you’re looking to register a trust in Australia, understanding this basic setup is a solid first step. If you are still confused, you can take help from the expert accountant.
What Types of Trusts Can I Register in Australia?
You can register different types of trusts in Australia, each suited to various needs:
- Family (Discretionary) Trusts: The trustee decides how and when to distribute income or capital among beneficiaries. This flexibility makes them popular for families wanting tax benefits and asset protection.
- Unit Trusts: Beneficiaries own fixed shares or “units” in the trust, similar to company shareholders. This is ideal for business partnerships or investment groups with clearly defined ownership.
- Hybrid Trusts: These combine features of discretionary and unit trusts, offering fixed capital rights alongside flexible income distribution, suitable for more complex arrangements.
- Bare Trusts: The simplest type, where the trustee holds assets for a beneficiary who has full control over them. Often used for holding assets temporarily or for minors.
Choosing the right trust depends on your goals like asset protection, tax planning, or business structuring. Understanding these types helps you pick the best fit for your situation.
At ISM Accountants, we not only help you set up the right trust but also offer a full range of accounting and advisory services to support your financial journey — explore our services today.
Who Are the Key People Involved in a Trust?
When you register a trust in Australia, several key people are involved: the settlor, who establishes the trust by transferring the initial asset; the trustee, who legally manages the trust’s assets; the appointor, who has the power to appoint or remove trustees; and the beneficiaries, who are entitled to benefit from the trust’s income or capital.
- Settlor: The person who sets up the trust by handing over a small initial amount (called the settled sum). They don’t manage the trust after that.
- Trustee: The individual or company that holds and manages the trust assets. They must act in the best interests of the beneficiaries.
- Appointor: The person with the power to appoint or remove trustees, providing a layer of control.
- Beneficiaries: Those who benefit from the trust’s income or assets.
Understanding these roles is important because each comes with responsibilities and legal obligations.
Recommended Read: Professional Tax Accountant Service in Perth
How Do I Register a Trust in Australia?
Starting a trust in Australia might sound complicated, but once you break it down, it’s quite manageable—especially when you know how to register a trust in Australia step by step. Whether you’re setting one up for family planning, tax benefits, or asset protection, following a clear process with professional help can make it much easier.
1. Pick the Type of Trust You Need
First things first — decide what kind of trust suits your goals.
Here are the main types:
- Family trust (discretionary) – great for protecting assets and distributing income among family members.
- Unit trust – used when beneficiaries hold fixed shares.
- Hybrid trust – a mix of the two above.
- Bare trust – a simple structure where the trustee holds assets for one beneficiary.
Not sure which one’s right? It’s worth talking to an accountant or lawyer.
2. Choose Your Trustee and Appointor
The trustee is the person (or company) who manages the trust. You can choose an individual, but many people go with a company trustee for added legal protection and ease in the long run.
Also, name an appointor – they have the power to replace the trustee if needed. This is an important role, especially for family trusts.
3. List the Beneficiaries
These are the people (or entities) who’ll benefit from the trust. You’ll need to name them clearly in the trust deed. It can include family members, charities, or even companies.
4. Write the Trust Deed (With Help!)
The trust deed is like the rulebook for your trust. It sets out who the trustee and beneficiaries are, how the trust works, and what it can do.
Make sure you get legal help here — it’s a legal document and needs to be watertight.
5. Settle the Trust
This part is simple but essential. A settlor (someone who’s not a beneficiary or trustee) gives a small amount of money — say $10 — to the trustee to officially create the trust.
6. Sign and Stamp the Trust Deed
Once the deed is ready, all parties sign it. In some states like NSW, you also need to stamp the trust deed and pay a small stamp duty. Timeframes and costs vary by state, so check with your local revenue office.
7. Register for an ABN and TFN
To operate properly, the trust needs its own Australian Business Number (ABN) and Tax File Number (TFN). You can apply online through the ATO. This step is crucial if your trust is going to earn income.
8. Open a Bank Account in the Trust’s Name
Next, open a separate bank account for the trust. This keeps the trust’s money completely separate from your personal or business accounts.
9. Start Using the Trust
Now you’re good to go! Your trust is ready to start holding assets, investing, or distributing income, depending on what it was set up for.
Setting up a trust is a smart move for many Australians — but it’s not a DIY job. A good lawyer or accountant will make sure your trust is set up correctly and legally.
Done properly, a trust can give you flexibility, protection, and peace of mind.
Why Should I Set Up a Trust?
Trusts are a valuable financial tool used by many Australians to protect and manage their wealth. They provide a flexible way to:
- Defend your assets against lawsuits or creditors.
- Distribute income among family members to reduce the overall tax burden.
- Plan your estate so your assets pass to the right people smoothly, avoiding probate delays.
- Structure businesses or investments for better management and succession planning.
Overall, trusts are a powerful way to secure your financial future and ensure your wealth is handled according to your wishes.
Can I Set Up a Trust Myself?
You can register a trust in Australia yourself, but it’s highly recommended to get professional help. While DIY trust kits are available, the risk of mistakes is significant. A poorly drafted trust deed or missed legal steps can cause costly problems later, including tax penalties or disputes. Professional accountants and lawyers ensure your trust is tailored to your needs, legally compliant, and tax-effective. ISM Accountants offer expert advice to make the process smooth and worry-free.
How Much Does It Cost to Register a Trust?
The cost to register a trust in Australia generally ranges from around $150 for basic online services to $5,000 or more for full legal support, depending on complexity and professional involvement. Here’s a brief overview:
- Online template services: $150–$400
- Accountant or small firm: $500–$1,000
- Legal firm (comprehensive): $1,500–$5,000+
- Corporate trustee setup (optional): additional $700–$1,400
- Stamp duty varies by state:
- NSW: $500
- VIC: $200
- NT: $20
- TAS: $20
- QLD, SA, WA, ACT: no stamp duty
Ongoing administration and compliance costs can add several hundred to a few thousand dollars annually. Professional advice is recommended to ensure the trust is set up correctly and legally. You can also visit the ATO’s official guide on trusts to understand your obligations in more detail.
Can I Change Trustees or Beneficiaries Later?
In most cases, yes—you can change trustees or beneficiaries after you register a trust in Australia, but it depends on the specific terms outlined in your trust deed. Many trust deeds include provisions that allow for the appointment or removal of trustees and the addition or removal of beneficiaries. However, the process for making these changes can vary significantly.
Sometimes, when you register a trust in Australia, making changes later on can require formal decisions, signatures from certain people, or even court approval if things get complicated. That’s why it’s really important to carefully review your trust deed and get expert advice to make sure any changes are done properly and don’t cause unexpected legal or tax problems.
Working with experienced accountants or lawyers, like the team at ISM Accountants, can make handling these changes much easier and help keep your trust running smoothly and compliant with the law.
Recommended Read: Professional Tax Consultant in Australia
Conclusion
Registering a trust in Australia is a smart way to protect your assets, save on taxes, and plan ahead for your family’s future. If you’re looking to register a trust in Australia, the process might feel a bit overwhelming at first, but breaking it down into simple steps makes it much easier to manage. With the right support from ISM Accountants, you can set up a trust that fits your needs and gives you peace of mind.
Ready to get started? Contact ISM Accountants — we’re here to help you every step of the way.
FAQ's
A family trust (discretionary trust) allows the trustee to select how income and capital are divided to beneficiaries, whereas a unit trust has defined entitlements and beneficiaries possess specific units, much like shareholders.
While it’s possible to set up a trust yourself, professional advice is highly recommended to ensure the trust deed is legally sound, tailored to your needs, and compliant with tax laws.
Stamp duty on trust deeds varies by state and territory. Some jurisdictions require it, while others don’t. It’s important to check local regulations to avoid penalties.
Yes, appointing a company as trustee is common and offers benefits like added asset protection and continuity, especially for family or business trusts.
Trustees must lodge annual tax returns, keep accurate financial records, comply with the trust deed, and meet any state or federal reporting requirements to maintain the trust’s legal and tax status.
