Trusts are widely used for investment and business purposes.
A trust is an obligation imposed on a person or other entity to hold property for the benefit of beneficiaries. While in legal terms a trust is a relationship not a legal entity, trusts are treated as taxpayer entities for the purposes of tax administration.
The trustee is responsible for managing the trust’s tax affairs, including registering the trust for taxation compliance, lodging trust tax returns and paying some tax liabilities.
Beneficiaries (except some minors and non-residents) generally include their share of the trust’s net income as income in their own tax returns. There are special rules for some types of trust including family trusts, deceased estates and super funds.
Discretionary Trusts (sometimes known as Family Trusts) are the most common type of trust used by business owners in Australia. They are generally created to hold a family’s assets and/or business so as to protect those assets and to facilitate tax planning for family members.
Our staff at Parker Accounting can assist you with deciding which trust type best suits your circumstances, set up the trust and complete your ongoing tax returns.