What trustees need to do

As the trustee of a closely held trust:

  • you should advise your beneficiaries that if they haven't quoted their TFN to you before they receive a payment from the trust or become entitled to trust income, you may be required to withhold from that payment or entitlement
  • you must lodge an Annual trustee payment report (it's part of your trust tax return) to report total payments made to, and unpaid entitlements created in, each beneficiary in the income year.

If a beneficiary quotes their TFN, you must:

If beneficiaries have not quoted their TFNs to you before you make a payment or make them entitled to income, you must:

There are penalties for failing to:

  • withhold when required
  • pay an amount withheld by the due date
  • lodge reports on time.
    Last modified: 04 May 2016QC 23140