Setting up a trust in Australia involves choosing the right trust structure, preparing a trust deed, appointing a trustee, and meeting your registration and tax obligations — a process that typically takes anywhere from a few days to several weeks depending on complexity. Costs vary widely based on whether you use a solicitor, an accountant, or an online company registration service, so it pays to understand each step before you commit.
How to set up a trust in Australia: costs and process — 2026 AU guide
Trusts are one of the most flexible and widely used legal structures in Australia, favoured by families managing wealth, small business owners seeking asset protection, and investors holding property or shares. Yet the process of establishing one correctly can feel opaque, particularly for first-timers. This guide walks you through every stage — from choosing a trust type to meeting your ongoing compliance obligations — so you can approach the process with confidence.
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What is a trust and why do Australians use one?
A trust is a legal arrangement in which one party (the trustee) holds and manages assets for the benefit of another party or parties (the beneficiaries). Unlike a company or a sole trader structure, a trust is not a separate legal entity in itself — the trustee holds that legal responsibility, whether that trustee is an individual or a corporate entity.
Australians use trusts for a range of reasons: distributing income among family members, protecting assets from creditors, structuring a small business, or managing investments across generations. The right reason to use a trust — and whether a trust is appropriate at all — depends heavily on your personal and financial circumstances. Always speak with a registered tax agent or solicitor before deciding on a structure.
For businesses considering a corporate trustee, it is worth reading our cost guide to understand the additional step of registering a company through ASIC.
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The main types of trusts available in Australia
Before you can set up a trust, you need to identify which type suits your situation. The most common structures include:
Discretionary (family) trusts give the trustee full discretion to decide how income and capital are distributed among beneficiaries each financial year. This flexibility makes them popular for family groups and small business owners. Unit trusts divide the trust's assets into fixed units, much like shares in a company. Each unitholder receives distributions in proportion to the number of units they hold. Unit trusts are commonly used for joint ventures and investment structures. Hybrid trusts combine features of both discretionary and unit trusts, though they attract complex tax treatment and are used in more sophisticated arrangements. Testamentary trusts are created by a will and only come into effect upon the death of the will-maker. They are not set up during a person's lifetime. Self-managed superannuation fund (SMSF) trusts operate under an entirely separate legislative regime and should be considered distinct from the structures discussed in this guide. The Australian Taxation Office is the primary regulator for SMSFs.---
Step-by-step: how to set up a trust in Australia
1. Decide on your trust structure and trustee
Your first decision is whether the trustee will be an individual (or multiple individuals) or a corporate trustee — that is, a company established specifically to act as trustee. A corporate trustee provides an extra layer of asset protection and makes succession planning simpler, but it also means registering a company with ASIC and meeting the ongoing obligations that come with it.
2. Engage a solicitor or qualified professional to draft the trust deed
The trust deed is the foundational legal document. It names the settlor (the person who establishes the trust by gifting a nominal sum), the trustee, and the beneficiaries. It also sets out the rules governing how the trust must operate. The deed must be carefully drafted to reflect your intentions and comply with relevant state and territory legislation.
A solicitor or experienced accountant should prepare this document. Templated deeds are available online, but they carry real risk if they do not accurately reflect your circumstances or the applicable law in your state.
3. Execute the deed and pay stamp duty
Once drafted, the trust deed must be signed by all relevant parties. In most Australian states and territories, the execution of a trust deed triggers a stamp duty obligation. The rates and processes differ by jurisdiction, so you will need to contact your state or territory revenue office. For example, Revenue NSW administers stamp duty in New South Wales, while the State Revenue Office handles it in Victoria.
4. Appoint the trustee and settle the trust
A settlor — who should be independent of the beneficiaries and trustee -- contributes a nominal gift (often a small sum of money) to the trust to formally bring it into existence. After settlement, the settlor plays no further role.
5. Register the trust for tax purposes
After execution, you will need to apply for a Tax File Number (TFN) for the trust through the Australian Taxation Office. If the trust will conduct business, carry on an enterprise, or engage in activities that require it, you will also need to register for an Australian Business Number (ABN) through the Australian Business Register. You may also need to register for GST depending on the trust's annual turnover.
6. Open a trust bank account
The trustee must keep trust assets completely separate from their personal or business assets. Most Australian banks will open a trust account in the trustee's name "as trustee for" the trust, though requirements vary between institutions.
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What does it cost to set up a trust in Australia?
Trust establishment costs vary considerably and depend on the type of trust, the complexity of the deed, and whether you use a solicitor, accountant, or an online service provider. Because fees change frequently and are not published by a single authoritative source, we have omitted specific dollar figures here to avoid misleading you.
As a qualitative guide:
- Solicitor-prepared deeds tend to be the most comprehensive and the most expensive option, reflecting the bespoke legal advice involved. - Accountant-facilitated trusts often combine deed preparation with tax structuring advice and may be competitively priced. - Online company registration and trust deed services offer speed and convenience at a lower price point, though they provide less tailored advice. See our best company registration services in Sydney for independently reviewed providers. - Corporate trustee registration adds ASIC's company registration fee on top of the trust deed cost. Current ASIC fees are published at asic.gov.au. - Stamp duty is an additional state-based cost that depends on your jurisdiction.
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Ongoing obligations once your trust is established
Establishing the trust is only the beginning. Trustees have significant ongoing legal duties, including:
- Lodging an annual trust tax return with the Australian Taxation Office - Maintaining accurate records of all transactions, resolutions, and distributions - Preparing trustee resolutions before 30 June each financial year to determine how income will be distributed to beneficiaries - Meeting any ASIC obligations if a corporate trustee is used, including keeping company details up to date - Complying with the relevant state Trustee Act and any conditions in the trust deed itself
Failure to meet these obligations can have serious tax and legal consequences. Engage a registered tax agent or solicitor to keep your trust compliant year after year.
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Choosing the right service provider
There is a growing market of online services that help Australians register companies and establish trusts quickly and affordably. Quality varies, so it is worth reviewing independent comparisons before choosing. Our methodology explains how we assess and rank service providers in our directory.
When evaluating a provider, consider whether they offer legal review of the deed, what support is available after setup, and whether they have experience with your specific trust type.
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FAQ
Q: Can I be both trustee and beneficiary of my own trust? A: In many cases yes, though there are legal and tax considerations depending on the trust type and your state. You should confirm the arrangement with a solicitor or registered tax agent to ensure it is valid and tax-effective. Q: Do I need to register a trust with ASIC? A: Trusts themselves are not registered with ASIC. However, if you use a corporate trustee, that company must be registered with ASIC. The trust also needs a TFN and potentially an ABN through the Australian Taxation Office. Q: How long does it take to set up a trust in Australia? A: The timeline depends on complexity. A straightforward discretionary trust with an individual trustee can sometimes be established within a few business days once the deed is signed and duty paid. A corporate trustee structure takes longer because the company must be registered first. Q: Can I change the terms of a trust after it is established? A: It depends on the trust deed. Many deeds include provisions allowing the trustee or appointor to amend certain terms, but changes may have tax or stamp duty implications. Any amendment should be reviewed by a qualified professional.---
Sources
- ASIC — Australian Securities and Investments Commission - Australian Taxation Office — Trusts - business.gov.au — Business structures - Australian Business Register - Corporations Act 2001 (Cth)
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Information in this article is general only and not legal or tax advice. Verify the details with the linked sources or an appropriately qualified Australian professional before relying on them.
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