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Trusts

A trust is an obligation imposed on a person or other entity to hold property for the benefit of beneficiaries.

Last updated 6 January 2019

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 in the tax system, lodging trust tax returns and paying some tax liabilities.

Beneficiaries (except some minors and non-residents) 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.

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See also

A trustee is liable for the debts and obligations of the trust.

Work out how the net income of a trust is taxed.

Disposal of a trust asset can result in a capital gain or loss unless a beneficiary is absolutely or specially entitled.

The trustee must manage the trust's tax affairs including registering and reporting for tax.

How to work out the specific rules for your type of trust.

What to do when a trust vests and how to act if issues occur.

There are tax consequences to trust splitting arrangements.

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