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Key Lodgment Due Dates
If you’re a business owner or someone who manages a trust, it’s important to know the specific tax responsibilities that come with it. One key task is lodging your trust tax return annually with the Australian Taxation Office (ATO). Your trust tax return is vital as it contains details about the trust’s income, expenses, tax credits, and other financial information. These details help the ATO assess the tax obligations of your trust.

At TMS Financials, we’re here to support you in ensuring that your trust meets its tax requirements. We provide professional advice and prepare all necessary financial statements to make the process straightforward. Our goal is to help you comply with the tax laws and protect the benefits for you and your beneficiaries, managing every step of the way to prevent any potential penalties.

How TMS Financials Can Help with Your Trust Tax Return

At TMS Financials, we understand the importance of accurate and timely trust tax return filing. Our team is here to ensure your trust’s tax obligations are handled efficiently, providing you with compliance and peace of mind.

Here’s how TMS Financials can assist you with your trust tax return:

Assessing your Trust's tax obligations

We start by determining if your trust needs to lodge a tax return, considering the type of trust and its income sources. This step is crucial to ensure that all legal requirements are met.

Tracking deadlines

We keep track of all important filing deadlines to ensure your trust tax return is lodged on time. This proactive approach helps avoid any late filing penalties and keeps your trust in good standing.

Maximising your Trust tax deductions

Our experts will thoroughly review your trust’s financial records. This helps ensure all relevant income and deductions are correctly reported, which is essential for accurate tax return preparation.

Lodging your Trust tax return

Our team will guide you in preparing and lodging your trust tax return through the Australian Taxation Office (ATO) portal. We ensure everything is filed correctly to avoid any issues with compliance.

Lodge your Trust Tax Return with TMS Financials

Our team at TMS Financials specialises in providing personalised tax solutions tailored to your unique situation. We can help you navigate through the complexities of tax planning, identify the most effective strategies for your situation, and ensure you maximise your tax savings.

We’re an Australian tax accounting firm with 30+ years of experience serving business owners and investors. Our reputation for reliability and exceptional client service is built on providing accurate financial advice and asset protection. We remain committed to serving our clients with integrity, professionalism, and quality, and have the expertise to help you succeed.

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Navigating Trust Tax Returns

Guidance on trust tax returns

Our team at TMS Financials is dedicated to assisting you with the complexities of trust tax returns, ensuring you fulfill all obligations set by the Australian Taxation Office (ATO). Whether you manage a family trust, an investment trust, or a hybrid trust, we can help you understand your responsibilities, including accurately reporting assessable income and making distributions to beneficiaries.

Section 100A

Section 100A of the Income Tax Assessment Act 1936 is designed to prevent tax avoidance. It applies when a benefit is received from a trust by one person, while another is entitled to income and thus taxed. This rule is invoked when such entitlement is part of an agreement or understanding intended to reduce or defer tax.

Family Trust Elections

Making a Family Trust Election (FTE) requires careful consideration, particularly if the trust aims to allocate franking credits to beneficiaries or has accumulated revenue losses. It’s important to note that an FTE doesn’t automatically allow distributions to every member of the family group; the trustee must check the trust deed to confirm that each individual qualifies as a beneficiary.

Trust Tax Return Due Date For Lodgment and Payment

At TMS Financials, we specialise in simplifying the management of trust tax returns for business owners and investors. With our extensive expertise and diligent approach, you can rest assured that your trust tax return will be prepared and lodged promptly, fully compliant with ATO requirements.

Key Lodgment Due Dates for Trust Tax Returns in Australia

Navigating the nuances of Australia’s trust tax laws can be difficult, but we’re here to guide you. Our expert tax accounting firm has in-depth knowledge of the key dates for Australian trust tax return lodgment:

Trust Income Tax Payment Dates in Australia

To aid your understanding, we’ve broken down the essential payment due dates based on the timing of your lodgment:

ATO Late-lodgement and Other Penalties

When filing a trust tax return in Australia, it’s crucial to be aware of potential pitfalls that can lead to errors, penalties, and compliance issues. By understanding what to avoid, trustees can navigate the process with caution and ensure accurate reporting. Let’s explore common pitfalls that should be avoided when preparing a trust tax return, along with associated penalties.

Failure to Lodge (FTL)

The FTL is typically up to $900 on each late return/activity statements for individuals and small businesses, and $4,500 for large businesses.

Late Lodgment

The amount of late lodgment penalty payable is $10 for each week or part of a week occurring after the due date and before the tax return is lodged. The maximum penalty is $200.

Misclassification of Trust Distributions

Potential penalties range from 20 to 60 Penalty units. Cost per penalty unit is $313.

Failure to Notify (FTN)

The FTN penalty is calculated at a rate of 8 per cent per annum of the amount not notified.

Key Taxes in Trust Tax Returns

When lodging a trust tax return in Australia, it’s important to be aware of the main taxes that need to be reported. Trusts are responsible for several tax obligations including income tax, Capital Gains Tax (CGT), Goods and Services Tax (GST), Fringe Benefits Tax (FBT), and Pay As You Go (PAYG) withholding. Accurate reporting of these taxes is essential for compliance with Australian tax laws.

Income Tax Details
Trusts are taxed at a rate of 47.5% on income they generate, such as from investments or renting out property, if this income is not distributed to beneficiaries. When income is distributed, beneficiaries must include it in their personal tax returns.
Capital Gains Tax Info
Trusts might be liable for CGT when they sell assets, such as property or shares, at a profit. CGT is calculated on the difference between the purchase and sale prices of the asset. Trusts holding an asset for more than 12 months may be eligible for a CGT discount. Beneficiaries should also consider CGT implications if they receive capital gains distributions from the trust.
About GST

Trusts registered for GST must report the GST collected from sales and can claim GST credits on purchases. This is managed through the Business Activity Statement (BAS), which is separate from the tax return. For more details on BAS, see our article “What is a Business Activity Statement?” and for GST specifics, refer to “Claiming GST Credits.”

Fringe Benefits Tax
Trusts providing non-cash benefits to employees or beneficiaries, such as a company car, may be subject to FBT. This tax is reported separately from income tax on the trust’s tax return. For more on FBT, check out our guide “What is FBT? An employer’s guide to Fringe Benefits Tax.”
PAYG Withholding Rules
If a trust employs people or pays certain contractors, it must withhold some tax from their payments and remit this to the ATO. This withheld amount is also reported on the trust’s tax return. For more information on PAYG, our article “PAYG withholding and PAYG instalments” offers further insights.

Understanding these tax requirements is crucial for trusts in Australia. Given the complexity of tax laws, consulting with a certified tax agent is recommended to ensure full compliance.

Need a Professional Tax Accountant in Sydney?

Hiring a personal tax accountant isn’t compulsory, but the benefits are undeniable. With TMS Financials, you can save time, reduce stress, and potentially lower your tax liabilities. Our team excels in handling complex tax scenarios and provides proactive, knowledgeable advice based on the latest tax laws. Whether you’re too busy to manage your taxes, lack the necessary expertise, or simply seek the peace of mind that comes with professional guidance, we’re here to help.

Get in touch with us today to discover how our personalised accounting services can make a difference in managing your finances more effectively.

Contact us today for a consultation.

Contact us today to learn more about how our accounting services can benefit your business. We look forward to hearing from you and helping you achieve financial success!

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