Family Trust

If would like to consider establishing a family trust structure we at GM Tax can assist with the setting up of a family trust and ongoing support including:

• Tax advice and guidance to ensure that a family trust structure is right for you and your business.
• Obtaining a Tax File & Australian Business Number for the family trust from the Australian Taxation Office.
• Registering a business name with ASIC.
• Assisting with book-keeping, payroll administration, superannuation obligations and the lodgment of quarterly Business Activity Statements.
• Preparing trust minutes, for example to record the distribution of trust income.
• Preparing the annual accounts and the tax return for the family trust and trust beneficiaries for submission to the ATO.

However, such an entity can be subject to the personal services income provisions and such can markedly reduce the tax advantages of a family trust structure.

Personal services income (PSI) is income produced mainly from your skills or efforts as an individual, examples include income payable under a contract which is wholly or principally for the labour or services of a person, or income derived by consultants from the exercise of personal expertise.

The PSI rules affect how you report your PSI and the deductions you can claim.

Should the PSI rules apply to your business the structure may still be useful and you would actively consider having a corporate trustee (rather than you being a trustee personally) to provide a measure of asset protection for you.