How this usually works
A solid trust tax return process starts with scoping the trust: confirm the trust deed (and any variations), the trust type (discretionary, unit or hybrid), beneficiaries, prior year returns and the accounting system in use (Xero, MYOB, QuickBooks). Your accountant will check for any deadlines, unpaid BAS, or open ATO items.
From there the work moves through five steps:
- Records and review: bank and loan statements, dividend and interest statements, rental and business records, CGT and depreciation details, prior year losses, and BAS if registered for GST.
- Financial statements: prepare profit and loss, balance sheet and workpapers. Identify distribution income versus taxable income differences.
- Resolutions and distributions: draft trustee resolutions and distribution minutes (generally by 30 June for discretionary trusts), then calculate each beneficiary’s share including any capital gains and franking credits.
- Prepare the trust tax return: complete the ATO trust return, relevant schedules (CGT, rental, primary production, PSI if applicable), and statements of distribution for beneficiaries.
- Lodge and follow-up: lodge via the agent’s ATO portal, provide distribution statements to beneficiaries for their own returns, and respond to any ATO queries.
If there’s a bookkeeping backlog, software cleanup or missing minutes, your accountant will triage those first to protect lodgment timing and accuracy.
Australian context to keep in view
- Deadlines: self-lodgers are generally due 31 October; registered tax agents often have extended dates under the ATO lodgment program.
- Trustee resolutions: for discretionary trusts, have resolutions in place by 30 June to validly distribute income.
- Beneficiaries: each beneficiary includes their share of the trust’s net income in their own return, along with any capital gains and franking credits.
- TFN withholding: may apply where beneficiaries haven’t quoted a TFN—your agent will advise and report if relevant.
- Losses: trust losses are usually retained in the trust (subject to trust loss rules), not distributed to beneficiaries.
- Common add-ons: CGT schedule support, rental schedules, GST/BAS compliance for trading trusts, payroll and STP if the trust employs staff.
If your trust sold property or shares, see Capital Gains Tax Help. If your trust runs an active business, you may also need Bookkeeping Services or a Business Tax Accountant alongside the trust return.
What to compare before you commit
Scope
Confirm the scope covers preparation of financials, trustee resolutions, statements of distribution, trust tax return and required schedules—plus any cleanup, BAS or CGT work.
Software fit
Ensure your provider is fluent in your ledger (Xero, MYOB, QuickBooks), uses bank feeds and reconciliation properly, and can explain their review workflow.
Turnaround and communication
Ask for expected timelines, what they need from you, how they handle June/October peaks, and who answers ATO queries.
Commercial fit
Compare fixed fee vs hourly, inclusions, CGT/rental schedule pricing, and whether you want compliance only or ongoing advisory.
- Check they are a registered Tax Accountant and, ideally, CA/CPA qualified with relevant trust experience.
- If your trust also operates a business, consider pairing with BAS Agent Services and Payroll Services.
What records we’ll ask for
- Trust deed and any variations, ABN and TFN details, and prior year trust tax returns and financials.
- Accounting file access (Xero/MYOB/QuickBooks), bank and loan statements, merchant and finance statements.
- Dividend, interest and managed fund annual tax statements; rental income and expenses; depreciation schedules.
- Share/property sale contracts and settlement statements; CGT cost base and adjustments; distribution statements from other trusts.
- Signed trustee resolutions and distribution minutes; beneficiary details and TFNs; any family trust/interposed entity elections (if applicable).
If any of the above are missing, we’ll help you rebuild the position and document supportable assumptions to reduce ATO risk.
Best next steps
List your key outcomes first (for example: “prepare 2024 trust financials and return, resolve distribution minutes, handle a property sale CGT schedule, and issue beneficiary statements”). Then seek quotes from providers who outline exact steps, documents needed and timeframes.
Use these related pages if your needs include CGT, business tax or broader help:
- Capital Gains Tax Help for property or share sales.
- Business Tax Accountant if the trust trades.
- Bookkeeping Services to clean and reconcile ledgers before year-end.
- Company Tax Return Accountant if you also run a company.
Frequently asked questions
What is a trust tax return and who lodges it?
A trust tax return reports the trust’s assessable income, deductions and distributions to beneficiaries. The trustee is responsible for lodging the return, usually through a registered tax agent.
What information is needed to prepare a trust tax return?
Typically: trust deed and variations, prior year returns, bank and loan statements, accounting file access, investment statements, rental records, CGT details, BAS where relevant, and signed trustee resolutions and distribution minutes.
When are trust tax returns due?
Self-lodgers are generally due by 31 October following year-end. If you use a registered agent and are on their lodgment program, you’ll usually receive a later date depending on your profile and ATO schedules.
Do beneficiaries still need their own tax returns?
Yes. Beneficiaries report their share of the trust’s net income, including any capital gains and franking credits, in their own returns using the statement of distribution issued by the trust.
Do I need trustee resolutions or minutes?
Yes—especially for discretionary trusts. Resolutions should generally be signed by 30 June to validly distribute income. Your accountant will prepare and brief you on timing.
What if a beneficiary hasn’t provided a TFN?
TFN withholding rules may apply. Your agent will confirm if withholding and reporting are required and handle the compliance steps.
Can the trust distribute a loss?
No. Losses are usually carried forward in the trust subject to trust loss rules, not distributed to beneficiaries.
How much does a trust tax return cost?
Fees depend on complexity: number of beneficiaries, trading activity, CGT events, rental schedules, bookkeeping cleanup and software quality. You can request a fixed-fee quote once scope and records are reviewed.