Trust Tax Return Accountant

As a general guide, a trust return engagement typically includes preparation of the trust financial statements (P&L and balance sheet), the trust income tax return, a review of the distribution resolution and present entitlement, the streaming of any franked dividends and capital gains where the deed allows it, and beneficiary statements showing each beneficiary's share. The specific scope depends on your circumstances, and a fixed fee covering that scope is confirmed in writing before work starts.

Generally, a trustee needs to make a valid resolution determining how the trust's income is to be distributed before the end of the financial year — that is, on or before 30 June. If a beneficiary is not made presently entitled to trust income by that date, the trustee can end up assessed on the undistributed income, often at the top marginal rate. The exact requirements depend on the trust deed and the relevant rules, so timing and documentation matter and we review them as part of the engagement rather than treating them as automatic.

Generally yes. A beneficiary who is made presently entitled to a share of the trust's income is usually assessed on that share for the year, even if the cash has not yet been paid across and is still owed to them by the trust. The entitlement, rather than the payment, is what generally drives the tax. The exact position depends on the trust deed, the resolution and the relevant rules, so we document each beneficiary's entitlement as part of the return rather than assuming it follows the cash.

Trust accounting income is broadly the profit shown in the trust's financial statements. Taxable net income is the figure worked out under the tax rules, and the two can differ — for example because franking credits are grossed up, some expenses are not deductible for tax, or the CGT discount is added back. Beneficiaries are generally assessed on their share of the taxable net income rather than the accounting income, which is why the two are reconciled before the return is lodged. This is general information and depends on your circumstances.

In general terms, many discretionary trusts can distribute to a corporate beneficiary — sometimes described as a "bucket company" — where the trust deed permits it, which can cap the tax rate applied to that share of income. This area carries Division 7A awareness: if the entitlement is not actually paid across and is left as an unpaid present entitlement, deemed-dividend rules may apply depending on the arrangement. Whether this is appropriate, and how it should be documented, depends entirely on your circumstances and the relevant rules, so we assess it case by case.

Yes, for CGT events happening on or after 1 July 2027. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (No. 49 of 2026) received Royal Assent on 26 June 2026 and is law; Schedule 1 commenced on 1 July 2026, but its substantive changes apply to CGT events happening on or after 1 July 2027. For CGT events before that date, an eligible discount capital gain made by a trust and streamed to an individual beneficiary can still attract the 50% discount; for CGT events on or after that date, the discount percentage for a trust that is not a complying superannuation entity becomes 0% on ordinary assets, with cost-base indexation available instead subject to conditions. A complying superannuation entity keeps its 33⅓% discount, so an SMSF is not affected by the 0% rule. For the full provision-level detail — who keeps a discount, the indexation replacement and its limits — see our technical resource on the CGT discount changes from 1 July 2027, linked in the related section on this page. This is general information only — the treatment of any gain depends on the trust deed, the resolution and the facts.

As a general rule, losses are trapped inside the trust and cannot be distributed to beneficiaries. A trust generally carries its losses forward and can only recoup them in a later year if it satisfies the relevant trust loss tests — which may include tests such as the income injection test and, depending on the trust type, ownership or pattern-of-distributions tests. Whether a particular loss can be recouped depends on the trust's circumstances and the applicable rules, so we document the position each year rather than assuming carry-forward is automatic.

Yes. Where a trust has a corporate trustee, we can prepare the trustee company return in the same engagement. The two are closely linked — the trustee company itself usually has minimal activity, but coordinating the trust return, the trustee company return and any bucket-company return together keeps the positions consistent and avoids reconciliation gaps between the entities.

Fees depend on the trust type and complexity — the number of beneficiaries, the condition of the bookkeeping, whether there are investments, rental properties or capital gains events, and whether financial statements need to be prepared from scratch. We quote a fixed fee in writing, scoped to your situation, after a short scoping call. There is no standard dollar figure because every trust differs.

Where a trustee, a beneficiary or a related company is borrowing, a lender will usually want to understand the income flowing through the trust — typically from the trust financial statements, the lodged trust return and the beneficiaries' positions. Because the same practitioner can prepare the trust return and coordinate the lending evidence, the distribution position, add-backs and entity structure are presented consistently rather than pieced together across two offices. Any lending outcome still depends on the lender's own assessment, and the tax points here are general information, not personal advice.