Characteristics of a Trust

  • Unlike a company ,a trust is not a separate legal entity – It’s a relationship between a person (called a Trustee) that holds property/make investment decisions/trade for the benefit of another ( a beneficiary/s)
  • Unlike a company (where one person can form it and be the sole director, shareholder, secretary etc.), a trust cannot be formed if there is only one person involved, that is the true is a the beneficiary
  • Trust structures are very popular in Australia because it offers more flexibility in distributing profits, here’s a few statements that makes trust structures more appealing to many of our clients:
    • Superannuation guarantee contribution doesn’t apply to trust distribution
    • Bank interest income is only taxed at 10% for non resident beneficiaries
    • Fully franked dividend is not taxed in the hand of non resident beneficiaries
    • Access to the CGT discount is still available (unlike companies)
    • Limited liability is still possible if a corporate trustee is appointed
    • The structure provides more privacy than a company (unlike shareholders, beneficiaries are not easily traceable)
    • There are many types of trusts, the most frequently used are:
      • Fixed Trusts
      • Unit trusts
      • Discretionary Family Trusts
      • Bare Trusts
      • Hybrid Trusts
      • Testamentary Trusts
      • Superannuation Trusts

What services included in the cost of forming a company

At Haz Accountants our services include:

  • Advising on the most suitable structure and forming the trust (trust deeds etc.)
  • Registering your Trust with the Office of State Revenue and paying the stamp duty.
  •  Apply for an ABN (Australian Business Number) with the ATO along with a TFN (Tax File Number)
  • Advice onto wether you will need to be registered for GST, PAYG withholding tax, Fringe benefit tax , along with other general advice such as opening bank accounts, keeping your records, dealing with subcontractors/employees etc.

How long does it take?

  •  If all necessary information are obtained and agreed upon, it’s formed within 1 hour
  • ABNs are usually issued within 28 days

Required information:

  • Physical Business location and postal address
  • Type of business activities
  • How many Trustees, Beneficiaries will the entity have
  • Full legal name, date of birth, addresses of Trustees and beneficiaries.
  • Place of birth and TFN  of the trustees if individuals or
  • The Estimated business ’s sales/turnover during the first year of operation

Contact Us  Now, for further disccussion.