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Unit Trust

 Softcopy *
Unit Trust$800
* Add $75 for hard copy

Fixed trust

The DBA unit trust is prepared as a fixed trust. In particular, taxable distributions received from a fixed trust should obtain concessional tax treatment on receipt by an SMSF (as compared to 47% for distributions received from non-fixed trusts), even if the SMSF is in pension mode.

Also, the NSW Office of State Revenue has confirmed that the DBA unit trust is a fixed trust for NSW land tax purposes.

What’s in our package?

This package provides the necessary documents to establish a unit trust. It includes:

  • Letter;
  • Relevant ATO forms;
  • Trustee minutes;
  • Memo;
  • Deed;
  • Application for initial units;
  • Unit certificates; and
  • Register of unitholders.

Note: Stamp duty is $200 in Victoria, $500 in NSW and $50 in both Tasmania and the NT (broadly, provided there is no dutiable property at the time of execution).

In Victoria you must lodge deeds for stamping with a registered Duties Online organisation. DBA Lawyers can assist you with stamping your deeds in Victoria at a cost of $265 (including $200 duty, our handling fee and postage).

A Duty Summary for each state and territory‘s duty criteria and whether and where to stamp is included in our package.

About the unit trust

The DBA unit trust (‘UT’) is prepared as a fixed trust. This means that a unitholder has a fixed entitlement to income and capital. Thus, less onerous tax provisions apply such as the trust loss and franking credit provisions. Also, taxable distributions received from a fixed trust should obtain concessional tax treatment on receipt by an SMSF (as compared to 47% for distributions received from non-fixed trusts), even if the SMSF is in pension mode.

Also, the NSW Office of State Revenue has confirmed that the DBA unit trust is a fixed trust for NSW land tax purposes.

Note that there are many suppliers whose UTs are non-fixed. These trusts may not satisfy the strict rules on the carry forward of losses and the distribution of franking credits.

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