Fixed Unit Trust for NSW Land Tax

A unit trust is a trust in which the trust property is divided into a number of defined shares called units. The beneficiaries subscribe for the units in much the same way as shareholders in a company subscribe for shares. The assets of the trust are held by the trustee on trust for the unitholders, who generally are entitled to the capital and income of the trust fund in proportion to their holding of units.

The trust deed for this trust contains provisions that endeavour to ensure that the trust is a fixed trust for both:

  • Income tax purposes; and
  • New South Wales (NSW) land tax purposes

Fixed trusts for income tax purposes

Where a trust incurs tax losses, certain rules need to be satisfied in order to claim those losses. The rules for claiming the losses depend on whether the trust is a ‘fixed trust’ or a ‘non-fixed trust’.

A trust is a fixed trust if persons (i.e. individuals, companies, trusts, etc.) have fixed entitlements to all the income and capital of the trust, but this does not necessarily mean that all unit trusts will be fixed trusts.

Fixed trusts for NSW land tax purposes

For a trust to be a fixed trust for NSW land tax purposes, and not a ‘special trust’, the trust deed includes certain provisions approved by the NSW Office of State Revenue, to ensure that the unitholders are presently entitled to the income and capital of the trust.

The online Fixed Unit Trust order form captures all of the required information to setup the trust structure.  The smart forms help guide the user through the process to ensure the clients requirements are reflected.We offer the following Unit Trusts: standard Unit Trust, Non-Geared Unit Trust, Fixed Unit Trust (for Income) and Fixed Unit Trust for NSW Land Tax. Make sure you understand the trust structure you are ordering and if you are unsure contact our office.Clients will receive an electronic copy of the deed and supporting documents in addition we can stamp deeds for your jurisdiction.Stamping Service for NSW and VictoriaWe can arrange to have the trust deeds stamped in VIC and NSW with the applicable stamp duty for a fee + Duty.
Unit Trust documentation will be prepared in accordance with the order form and will usually include:
  • Unit Trust Deed
  • Unit Trust Guide
  • Trustee and Subscriber Resolutions
  • Unit certificate/s
  • Unit holders Register
  • Stamp Duty Info and stamping checklist
You will receive electronic and optional hard copies of the documents.