Trust Tax Return
Minimise Your Tax Liability
Expert Tax Agents
Avoid late Payment Penalty
The trust tax return provides important information about the trust’s income, deductions, credits, and other financial details that the ATO needs to assess its tax liability.
Do I Need to Lodge Trust Tax Return?
It’s important to note that not all trusts are required to lodge a tax return. Trusts that meet the following criteria are generally exempt from lodging a tax return:
Business Owners
If you own a business and have a trust to manage income or assets, you need to lodge a trust tax return to comply with tax regulations.
If the business is structured as a trust entity
If the trust generated income during the financial year
If the trust distributed income to beneficiaries during the financial year
Investors
As an investor using trusts or managed schemes, check if you must lodge a trust tax return to meet tax obligations accurately.
Investments or properties under trust
If the trust distributes income to you as an investor
If you invest through a trust (e.g., a managed investment scheme or unit trust)
Key Taxes Reported in a Trust Tax Return
When filing a tax return for a trust in Australia, it’s important to understand the key taxes that must be reported. Trusts are subject to various tax obligations, including income tax, capital gains tax, goods and services tax, fringe benefits tax, and PAYG withholding. By accurately reporting these taxes, trustees can ensure compliance with Australian tax laws.
Income Tax
Capital Gains Tax (CGT)
Goods and Services Tax (GST)
If the trust is registered for GST, it must report the GST it has collected on sales and claim GST credits for expenses. The trust reports its GST obligations on the Business Activity Statement (BAS) rather than the tax return.
Fringe Benefits Tax (FBT)
Pay As You Go (PAYG) Withholding
These are some of the key taxes reported in a trust tax return in Australia. However, it’s important to note that tax laws can be complex, and it’s recommended to consult with a qualified tax professional or seek guidance from the ATO for specific tax obligations related to your trust.
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.
Do I need a tax agent for Trust Tax Return Lodgment?
Navigating the complexities of trust tax returns in Australia can be challenging, particularly for individuals who lack expertise in taxation and trust laws. In such cases, enlisting the services of a qualified tax agent can be immensely beneficial. A tax agent specialising in trusts can provide valuable assistance and guidance throughout the trust tax return process.
Yes, an Australian Tax Agent Can Optimise Deductions under Australian Trust Tax Laws
Yes, Engaging an Australian Tax Agent Allows for Extended Lodgement Deadlines
Save time and effort by relying on our streamlined process, ensuring a seamless experience from start to finish.
Late-lodgement and Other ATO 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.
Misclassification of Trust Distributions
Potential penalties ranges from 20 to 60 Penalty units. Cost per penalty unit is $313.
PENALTY
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
PENALTY
Failure to Notify (FTN)
The FTN penalty is calculated at a rate of 8 per cent per annum of the amount not notified
PENALTY
Remember that penalties can vary depending on individual circumstances and the severity of the non-compliance. It’s essential to consult the official guidelines from the Australian Taxation Office (ATO) and consider seeking professional advice to ensure accuracy, compliance, and penalty avoidance.
How to Avoid Trust Tax Return Penalties
Accurate and Complete Reporting
Maintain detailed records and reconcile financial statements with the tax return.
TIPS
Comply with Lodgment Deadlines
Stay organised, plan ahead, and be aware of specific due dates. Set reminders or engage a tax professional to ensure timely lodgment
TIPS
Maintain Adequate Record-Keeping
Utilise appropriate accounting systems and software for efficient record-keeping.
TIPS
Seek Professional Guidance
Benefit from their guidance to ensure compliance and maximise tax benefits.
TIPS
Simplify Your Trust Tax Return
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