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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 45% 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 unit trusts are non-fixed. These trusts may not satisfy the strict rules may not obtain certain tax concessions.
- Covering letter and completion checklist
- Trustee resolutions
- Unit Trust Deed
- Unit trust forms including application for units, unit certificates and register of unitholders
- Links to relevant ATO form
- Unit Trust Memo
A duty summary for each State and Territory in Australia is also included as duty is payable in a number of jurisdictions.
For more information and related articles
For more information, click on the articles listed below:
- Should an SMSF have a unitholders agreement?
- Many unit trust deeds need varying especially if an SMSF is involved
- SMSFs with units in unit trusts and NALI –– review and action may be needed
- SMSFs and 50/50 unit trusts
- Trustee and unitholder liability in unit trusts
- Why should you order trusts from DBA Lawyers?
- SMSFs investing via unit trusts
- Advantages of ordering unit trusts from DBA Lawyers
- SMSF deeds – which supplier should you use: a law firm or a non-qualified supplier?