Why set up a trust? 

• To separate the owner of the asset (the beneficiary) and control over that asset (the trustee) 
• To provide greater flexibility in tax planning 
• To use as a business entity either for investing (for example, to purchase real estate or a share portfolio) or for trading. 

How long does a trust last? 

• In NSW, a private trust can last for up to 80 years. The trust deed will set out how long it should last and can specify a shorter term – often based on a specific event happening, such as someone dying or reaching a certain age.  

Does a trust pay tax? 

• A trust has its own tax file number and is required to lodge tax returns annually. However, the trust generally is not subject to tax if all its annual income is distributed to beneficiaries, who pay the tax based on their marginal rate of tax. Where the trust conducts a business enterprise it can register for both an ABN and GST.