Accounting for family trusts, trustees and SMSF trustees

Who we look after

Trusts and super funds are run by people who usually have a day job, a business or a family to think about as well. We work with families who hold investments or a business through a discretionary (family) trust, with the individuals and companies acting as trustee, and with members who run their own super through an SMSF.

Chau Tran CPA looks after trust and SMSF accounts alongside financial statements and company tax returns, and principal David Ross advises on business structures. Ross Accounting Pty Ltd is a registered tax agent with the Tax Practitioners Board, registration number 21430015, which you can check on the TPB public register.

• Families thinking about a trust to hold investments or run a business
• Individual and corporate trustees of existing family, unit and testamentary trusts
• People weighing up whether an SMSF suits them, and new trustees setting one up
• Existing SMSF trustees who need annual accounts, the audit arranged and the annual return lodged

Being a trustee is a legal role, not a title

A trust is not a legal entity in its own right. It is a relationship in which a trustee holds property for the benefit of beneficiaries, but the ATO still treats the trust as a taxpayer for tax administration. The trustee can be one or more people or a company, and must follow the trust deed, state or territory trust law and tax law.

Under trust law, a trustee is personally liable for the debts of the trust, with a right to be repaid from trust assets for liabilities properly incurred (but not where there has been a breach of trust). Under tax law, the trustee registers the trust, obtains its own tax file number, lodges its tax returns and pays some of its tax.

SMSF trustees carry an even heavier load. The ATO describes an SMSF as a trust set up for the sole purpose of providing retirement benefits to its members, and each trustee is personally responsible for the fund complying with super and tax law, even when relying on another trustee or a professional. Trustees are also responsible for decisions made by the other trustees.

Using an accountant does not move the legal responsibility: the trustee of a trust or SMSF remains accountable for compliance.

The family trust year: key dates for 2026–27

Beneficiaries are generally taxed on their share of the trust's net income whether or not the money is actually paid to them. Who that is for a discretionary trust usually depends on the trustee's distribution resolution, so the timing matters.

• By 30 June 2027: a resolution making beneficiaries entitled to trust income for 2026–27 must generally be made by the end of the income year to be effective for tax. If the deed sets an earlier date, the deed applies.
• By 31 August 2027: where capital gains are appointed to beneficiaries out of trust capital, that must happen within 2 months of the end of the income year.
• Every year: the trustee lodges a trust tax return, whatever the amount of net income, unless the ATO advises that one is not required. The due date depends on the trust's lodgment history and whether a tax agent lodges it.

The ATO notes there is no standard format for a resolution, because deeds differ. If a resolution is not effective, other beneficiaries or the trustee may be assessed instead, and where the trustee is assessed, that may be at the top rate of tax. Before resolving, it helps to have a complete copy of the deed and every amendment, and to confirm the beneficiaries are within the class the deed allows.

A trust is not a family trust for tax purposes just because it has "family trust" in its name. The trustee must make a family trust election, which can open up concessions such as easier use of trust losses, but distributions outside the nominated individual's family group then attract family trust distribution tax at the top marginal rate. Our trust tax returns page covers the annual return in more detail.

The SMSF year: what trustees must do

An SMSF can have up to 6 members. With individual trustees, every member must be a trustee (a single-member fund needs 2 trustees); with a corporate trustee, every member must be a director. New trustees and directors must sign the ATO trustee declaration within 21 days of being appointed. Each year the fund works through the same cycle:

1. Value the fund's assets at market value and keep evidence of the valuations for the auditor.
2. Prepare the financial statements: a statement of financial position and an operating statement.
3. Appoint an approved SMSF auditor no later than 45 days before the annual return is due. An audit is needed even in a year with no contributions or payments.
4. Once the audit is complete, lodge the SMSF annual return and pay any tax owing, along with the annual supervisory levy.
5. Review the investment strategy and keep minutes and records of trustee decisions.

The fund must also meet the sole purpose test, stay within the investment restrictions (generally no acquiring assets from, or lending to, members and other related parties, and no borrowing outside limited exceptions), tell the ATO about certain changes within 28 days, and remain an Australian super fund throughout the year. If the annual return is more than 2 weeks overdue, the fund may be unable to receive contributions or rollovers until it is lodged.

For self-lodgers, the ATO says newly registered funds and funds with overdue returns lodge by 31 October, and other funds by 28 February. When a tax agent lodges, the due date comes from the tax agent lodgment program, and the first return of a new fund is generally due on 28 February (or 31 October if the ATO reviewed the fund at registration and says so). See our SMSF service for how we set up and run funds.

Key figures for trusts and SMSFs in 2026–27

Contribution caps apply per person across all of a member's super funds, so contributions to an SMSF and a separate industry or retail fund count towards the same cap. Our guide to super contribution caps explains how they work.

Changes on the horizon: what is law and what is only announced

Tax on super balances above $3 million: law from 1 July 2026

The ATO confirms the better targeted superannuation concessions measure is now law and applies from 1 July 2026. A member whose total super balance is above the large super balance threshold pays an extra 15% tax on the share of earnings linked to the balance above it, plus a further 10% on the share linked to any balance above the very large threshold. For 2026–27 those thresholds are $3 million and $10 million, and both will be indexed to CPI. Members of an SMSF with larger balances may need to factor this into the fund's records and planning.

Minimum tax on discretionary trusts: announced, not yet law

In the 2026–27 Federal Budget on 12 May 2026, the Government announced a 30% minimum tax on discretionary trusts from 1 July 2028. The ATO states the measure is not yet law. As announced, the tax would be paid by the trustee, and non-corporate beneficiaries presently entitled to the trust's net income would get a non-refundable credit for it. A 3-year restructure rollover, proposed to start on 1 July 2027, would help move assets out of discretionary trusts into other entities. Exposure draft legislation was open for consultation from 3 to 18 September 2026.

Nothing changes for 2026–27 trust returns because of this proposal. We will update this page if the law passes, and we can talk through what it could mean for your structure in the meantime.

Wills and estate matters under the same roof

Trusts and super funds often sit at the centre of a family's estate plans. Our in-house solicitor, Geoff Versace, practises from the Ross Accounting office, so wills and other legal work can be looked at alongside the tax side of a family trust or SMSF instead of being split between two firms.

Learn more on our legal services page.

How Ross Accounting can help

• Choosing between a discretionary, unit or other trust, and getting it registered with its own TFN and, where needed, an ABN: see trusts
• Preparing trust accounts, trustee resolutions before 30 June and the annual trust tax return
• Explaining what running an SMSF involves, then setting up the fund and trustee structure: see self-managed super funds
• SMSF financial statements, arranging the independent audit and lodging the annual return
• Tax planning across the family group with our tax advice and planning service

We see clients at our Brookvale office on Sydney's Northern Beaches and our Redland Bay branch in Queensland. This page is general information only, not personal advice; for advice on your own trust or fund, contact us to arrange a consultation. The ATO also recommends speaking with a licensed financial adviser before deciding whether an SMSF is right for you.

Frequently asked questions

General information only, not personal advice. Tax rules change and your circumstances matter, so talk to us before acting. See our disclaimer.