Ballarat AccountantsBallarat Bookkeepers

Many businesses and family groups have an Australian trust in their legal structure but while it is common, you should remember how trusts really work. Trusts are complex. It is an equitable relationship between a legal owner or trustee and the beneficiaries under which the trustee holds the assets for. A company is a legal entity, but trusts are not. All actions are undertaken by the trustee but a trust is considered a taxpayer for tax purposes.

The types of trusts include unit trusts where the interests of the beneficiaries are utilised in contrast against discretionary trusts where these are at the trustee’s discretion. A hybrid trust is a combination of the two. Tax laws include the concept of fixed trusts and non-fixed trusts. Discretionary trusts and hybrid trusts are non-fixed trusts but not all unit trust are automatically fixed trusts. These are important in the utilisation of tax losses and franking credit distribution. Family trusts make a family trust election.

The trust details are in the trust deed, which makes it a rule book that the trust must run by.

Ballarat AccountantsBallarat Bookkeepers

A trustee can be an individual, group or company but it is common to use a special purpose company for this to distinguish the trust property from the individuals who control the trust. The trustee administers the trust daily and they make decisions in terms of investments, income distributions, etc. in accordance with the trust deed.

Contact UsContact Us

As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.

You can click here to speak to a businessaccounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.

We would love to help you formulate investment strategies and streamline your processes to take your business to the next level.  Our goal is to help you grow your business, find ways to invest more and increase your productivity.

Sky Accountants Ballarat

Phone: 1300 328 855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Sky Accountants Gisborne & Macedon Ranges

Phone: 03 97444522

Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437