Updated: March 2026

Operating a Family Trust (Discretionary Trust) or a Unit Trust comes with unique compliance rules, particularly regarding how income is distributed. The ATO pays close attention to trust tax returns, so it is vital to have your records in order.

Before your appointment with the Loyal Bright team, please gather the following information and documents for the financial year (1 July to 30 June):

1. Trust Documents & Beneficiaries

• Distribution Resolutions: A signed copy of the trustee's resolution detailing how the trust's income will be distributed. Crucial Note: The ATO requires this resolution to be drafted and signed before 30 June each year.
• Trust Deed: A copy of your Trust Deed and any subsequent amendments (if we do not already hold a copy on file).
• Beneficiary Details: The full names, Dates of Birth, Addresses, and Tax File Numbers (TFNs) for all beneficiaries receiving a distribution this year.

2. Financial Records

• Accounting Software Access: Please ensure your Xero, MYOB, or QuickBooks file is fully reconciled up to 30 June and invite us as your Accountant/Tax Agent.
• Bank Statements: Copies of bank statements for all trust bank accounts, showing the exact balance on 30 June.
• Loans & Liabilities: Statements for any loans owed by the trust or loans made by the trust to beneficiaries (Division 7A considerations).

3. Income & Investments

• Capital Gains/Losses: Details of any assets (property, shares, crypto) bought or sold by the trust during the financial year, including purchase/sale contracts and settlement statements.
• Dividend Statements: Statements for all shares owned by the trust, showing franked/unfranked dividends and franking credits.
• Rental Property Income: Annual summaries from your real estate agent if the trust holds investment properties, plus records of property-related expenses.

4. Business Operations (For Trading Trusts)

If your trust actively runs a business, please also provide:

• Debtors & Creditors: A list of Accounts Receivable (who owes the trust) and Accounts Payable (who the trust owes) as of 30 June.
• Stocktake: Closing inventory valuation as of 30 June.
• Payroll (STP): Confirmation that Single Touch Payroll has been finalised, and evidence of Superannuation Guarantee (SG) payments.

Notice: If you have any questions about your trust distributions or compliance requirements, please contact us before the end of the financial year so we can guide you effectively.

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