Setting up a trust in Australia typically costs between $800 and $3,500 in 2026, depending on the trust type and whether you use a solicitor, accountant, or an online registration service. The process involves drafting a trust deed, appointing a trustee, obtaining a TFN and ABN, and registering with the ATO — steps that can take as little as two business days with the right provider.
How to Set Up a Trust in Australia: Costs and Process — 2026 AU Guide
Trusts are one of the most popular structures for Australian families, investors, and small business owners seeking asset protection and tax flexibility. According to the ATO, there are more than 800,000 trusts registered in Australia as of 2025, and that figure continues to grow as more Australians seek legitimate ways to organise their financial affairs. Whether you are considering a family discretionary trust, a unit trust for business partners, or a testamentary trust for estate planning, understanding the costs and process upfront will save you time and money.
This guide walks you through every step, compares your provider options, and helps you make an informed decision in 2026.
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What Is a Trust and Why Set One Up?
A trust is a legal arrangement in which a trustee holds and manages assets on behalf of one or more beneficiaries. The trustee can be an individual or a company (a corporate trustee), and the beneficiaries are defined in a legal document called a trust deed.
Australians typically set up trusts for four key reasons:
- Asset protection — assets held in a trust are generally protected from personal creditors - Tax planning — income can be distributed to beneficiaries in lower tax brackets - Estate planning — trusts can pass wealth across generations with fewer complications - Business structuring — unit trusts are common in joint ventures and investment syndicates
It is worth noting that trusts do not eliminate tax — the ATO actively scrutinises trust distributions, particularly under Part IVA anti-avoidance provisions. Always seek qualified tax advice before choosing a structure.
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Types of Trusts Available in Australia
Choosing the right trust type is the most important decision you will make before registering anything. The four most common structures are:
Discretionary (Family) Trust — The trustee has full discretion over how income and capital are distributed among beneficiaries. This is the most widely used structure for family businesses and wealth management. Unit Trust — Beneficiaries hold fixed units, similar to shares. Income and capital are distributed proportionally. Common in investment syndicates and joint ventures. Hybrid Trust — Combines elements of both discretionary and unit trusts. Useful but complex; requires specialist legal advice. Testamentary Trust — Created by a will and only comes into effect upon death. Offers tax advantages for minor beneficiaries receiving income from a deceased estate.For most Australians starting a small business or managing family wealth, a discretionary trust with a corporate trustee is the most practical option.
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Step-by-Step Process to Set Up a Trust
Setting up a trust in Australia involves several discrete steps. Here is what the process looks like in 2026:
Step 1: Choose your trust type and structure Decide whether you want an individual or corporate trustee. A corporate trustee (a Pty Ltd company acting as trustee) costs more upfront but offers greater asset protection and continuity. Step 2: Draft the trust deed The trust deed is the governing document. It must be prepared by a qualified legal professional or an ASIC-registered document provider. It outlines the trustee's powers, the class of beneficiaries, and rules around distributions. Step 3: Settle the trust The deed must be executed by a "settlor" — typically a person unrelated to the trust (often your accountant or solicitor) who contributes a nominal settlement sum (usually $10). This formalises the trust's creation. Step 4: Stamp the deed (where applicable) Stamp duty on trust deeds varies by state. In New South Wales and Victoria, most discretionary trust deeds attract nominal duty (around $500 in NSW and $200 in Victoria as of 2026). Some states such as Queensland and South Australia have abolished stamp duty on trust deeds entirely — check your state revenue office for current rates. Step 5: Apply for a TFN and ABN Every trust needs its own Tax File Number (TFN) and, if carrying on an enterprise, an Australian Business Number (ABN). These are applied for through the ATO's Business Registration Service at no cost. Step 6: Open a trust bank account The trustee must open a dedicated bank account in the name of the trust. Most major banks require the trust deed, TFN, and trustee identification documents. Step 7: Register for GST (if applicable) If the trust's annual turnover is expected to exceed $75,000, GST registration is mandatory.The entire process can be completed in two to five business days when using an experienced provider, or up to four weeks if working through a traditional law firm.
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Trust Setup Costs in Australia: Provider Comparison (2026)
Costs vary significantly depending on who sets up your trust. Here is a comparison of the three main provider types:
| Provider Type | Typical Cost (AUD, 2026) | Turnaround Time | Includes Corporate Trustee Setup? | |---|---|---|---| | Online registration service | $800 – $1,500 | 1–3 business days | Sometimes (add-on, ~$500–$800 extra) | | Accountant / tax agent | $1,200 – $2,500 | 1–2 weeks | Often included or bundled | | Solicitor / law firm | $1,800 – $3,500+ | 2–4 weeks | Yes, usually included |For straightforward discretionary trusts, online services offer exceptional value. For complex arrangements — such as hybrid trusts, overseas beneficiaries, or trusts linked to SMSF structures — investing in a solicitor is worthwhile. According to IBISWorld's 2025 Legal Services Australia report, the average hourly rate for a commercial solicitor in a major Australian city is $380–$550 per hour, which explains why legal fees escalate quickly for bespoke arrangements.
If you are comparing online providers, check our best company registration services in Sydney for independently reviewed options available in 2026.
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Ongoing Compliance Costs and Obligations
Setting up a trust is a one-time cost — but running one carries annual obligations that many first-time trust holders underestimate.
Key ongoing requirements include:
- Annual tax return — Trusts must lodge a Trust Tax Return each year, even if no distributions are made. Accountant fees typically range from $800 to $2,500 annually depending on complexity. - Trustee resolutions — Before 30 June each financial year, the trustee must pass a formal resolution determining how income will be distributed. Failure to do this means all trust income may be taxed at the top marginal rate of 47%. - ASIC fees (if corporate trustee) — An annual ASIC review fee of $310 applies (2025–26 rate) for the trustee company. - Record keeping — Trustees must maintain detailed financial records for at least five years.
The ABS reports that Australians collectively hold over $4.2 trillion in assets through trust and superannuation structures, underscoring how mainstream — and how scrutinised — these arrangements have become (ABS National Accounts, 2024–25).
To understand the full cost picture before committing, review our detailed cost guide and our methodology for how we evaluate and rank providers.
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Common Mistakes to Avoid When Setting Up a Trust
Even well-intentioned trust setups can go wrong. Here are the most frequent errors to avoid:
- Using a generic deed — Cut-price deeds downloaded from unregulated websites may be invalid or fail to reflect your intentions. Always use a provider with legally reviewed, state-specific documents. - Naming the wrong settlor — The settlor must not be a beneficiary of the trust. Using a family member as settlor is a common and costly mistake. - Forgetting stamp duty — Missing the stamping deadline in your state can render the deed invalid or attract penalties. - No corporate trustee — Individual trustees become personally liable for trust debts. A corporate trustee provides a critical liability buffer. - Not updating the deed — Trust deeds should be reviewed every three to five years as tax law and personal circumstances change.
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FAQ
Q: Can I set up a trust without a solicitor in Australia? Yes. Online trust registration services can legally prepare and supply a discretionary trust deed without a solicitor involved. However, for complex structures or significant asset holdings, independent legal advice is strongly recommended. Q: How long does it take to set up a trust in Australia? With an online service, a straightforward discretionary trust can be established in one to three business days once all information is submitted. A corporate trustee company may add another one to two business days. Q: Do trusts pay tax in Australia? Trusts themselves do not generally pay income tax. Instead, income is distributed to beneficiaries, who pay tax at their individual marginal rates. If the trustee fails to distribute all income by 30 June, the trustee pays tax at the top marginal rate (47% in 2026). Q: Can a trust own property in Australia? Yes. A trust can own real estate, shares, business assets, and other investments. However, some states apply additional land tax surcharges on property held in discretionary trusts, so confirm your state's current rules with a tax professional before purchasing property through a trust.---
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