Thinking about running your business through a trust? It’s a popular choice for Australian founders because trusts can offer flexibility in how profits are distributed and, with the right setup, support asset protection and succession planning.
But one of the first questions we hear is: how much does it cost to set up a trust in Australia?
In short, the setup cost depends on the type of trust you choose, how bespoke the drafting needs to be, whether you appoint a corporate trustee, and a handful of government fees and follow-on documents. In this guide, we’ll break down those moving parts so you can budget with confidence and choose a structure that fits your goals.
What Is A Business Trust And When Does It Make Sense?
A trust is a legal relationship where a trustee holds property or runs a business for the benefit of beneficiaries, under a governing document called a trust deed. For small businesses, the two common options are a discretionary (family) trust or a unit trust.
Many owners choose a trust to help with profit distribution, separate business risks from personal assets, or to plan for future succession. If you’re weighing up the benefits and trade-offs, it’s worth reading our overview of trusts in Australia.
Before you lock anything in, you’ll also want to understand the core trust requirements such as obtaining an ABN/TFN for the trust, keeping proper records, and how the trustee must act under the deed.
What Drives The Cost Of Setting Up A Trust?
Let’s unpack the main cost drivers. The total outlay will vary based on your situation, but almost every trust setup will touch these areas.
1) Trust Deed Drafting And Legal Advice
The deed is the trust’s “rulebook”. It sets out the powers of the trustee, who benefits and how, how income/capital can be distributed, what happens if things change, and much more.
- Template vs tailored: Off‑the‑shelf deeds can be cheaper upfront, but they rarely reflect your business model, control preferences, or long‑term plans. Tailored deeds cost more initially but reduce the risk of costly amendments later.
- Family, unit, or hybrid features: Each has different distribution mechanics, control levers and tax flow-through rules. The more complexity, the more drafting and advice time required.
- Settlor: You’ll need a person (not a beneficiary) to “settle” the trust with a nominal sum and then step away from the arrangement. If you’re unsure who that should be and why it matters, see the role of a settlor.
2) Trustee Choice (Individual Or Corporate)
Appointing individual trustees reduces immediate cost, but a corporate trustee (a company you control) usually delivers cleaner control, clearer record‑keeping, and simpler changes down the track. More on costs for a company below.
3) Government And Registration Fees
There’s no federal fee to “register” a trust deed itself, but fees arise when you:
- Register a corporate trustee with ASIC (company registration) and pay ongoing annual review fees. ASIC amounts adjust each year-check the latest ASIC fees.
- Apply for an ABN/TFN for the trust (no fee to the ATO, but it’s still a setup step).
- Pay any state revenue charges: establishing the deed is often not dutiable in many states and territories, but duty can apply if dutiable property is transferred to the trust. Always check your state revenue office rules before moving assets in.
4) Ancillary Documents You May Need
Depending on your plans, you may need extra documents such as a loan agreement if you’re funding the trust, a Deed of Variation if you later update the deed, or a Unitholders Agreement if you choose a unit trust with multiple investors.
5) Ongoing Compliance
Budget for annual tax compliance, ASIC company review fees (if you use a corporate trustee), bookkeeping and any periodic deed updates. These are not “setup” costs, but they’re part of owning and running a trust well.
Family Trust Vs Unit Trust: Structure, Control And Typical Costs
Your choice of trust type is one of the biggest cost levers because it changes how the deed is drafted and which supporting documents you’ll need.
Family (Discretionary) Trust
A family trust gives the trustee discretion to distribute income and capital among a defined group of beneficiaries (usually a family group or related entities). It’s flexible for distributions and commonly used by owner‑operated businesses.
Cost implications:
- Deed complexity can be moderate, focused on distribution flexibility, control provisions (such as appointor powers) and succession planning.
- No additional investor agreements are typically needed if there’s only one controlling family group.
- If you later add new business partners or investors, you might need to restructure, which can trigger further legal and tax costs.
Unit Trust
A unit trust divides the interest in the trust into “units”, much like shares in a company. Unit holders are typically entitled to income and capital in proportion to their units, which makes this structure popular for multi‑investor ventures or joint projects.
Cost implications:
- Deed drafting must set out unit rights clearly, which can add complexity.
- If there’s more than one unit holder, you’ll usually want a Unitholders Agreement to deal with decision‑making, transfers, exits, restraints, and dispute resolution-this is an additional cost, but it’s crucial for risk management.
- Issuing, transferring or redeeming units has legal and tax consequences-budget for advice each time there’s a significant ownership change.
Not sure which model suits your plans? The right choice depends on who will own interests now and in future, how you want to share profits, and how easily you want to bring in (or let go) investors. If your business will hold company shares, read about beneficially holding shares through a trust to understand practical implications.
Should You Use A Corporate Trustee? Cost And Benefits
Appointing a company as trustee adds setup and ongoing fees-but it often pays for itself in clarity and control.
Why Many Owners Choose A Corporate Trustee
- Cleaner separation: The company acts as trustee for the trust, which helps keep business activities distinct from your personal affairs.
- Administration: It’s easier to replace directors or shareholders of the corporate trustee than to change individual trustees (which can otherwise require property retitling or lender consent).
- Perception and continuity: A corporate trustee can provide operational continuity and may be favoured by lenders or investors.
What It Costs
- Company setup: Budget for company incorporation plus a Company Constitution that suits your control preferences. Our fixed‑fee Company Set Up services include the key registration steps and documentation.
- ASIC fees: There’s an initial ASIC registration fee, then an annual review fee. These are indexed each year-check the current ASIC fees when you budget.
- Ongoing compliance: Basic company governance (resolutions, registers) and annual statements are part of the running cost.
If you’re certain the business will operate through the trust for the long term-or you’re likely to seek finance or investors-a corporate trustee is often a smart investment.
Step‑By‑Step Setup In Australia And A Budget Checklist
Here’s a typical pathway to establish a trust for your business and where costs usually appear. Your exact steps may differ slightly depending on the state/territory and your business model.
Step 1: Scoping And Advice
Start with a clear brief: your business purpose, who will control decisions, how profits should be shared, and any expected investors. This reduces rework and keeps legal costs efficient.
- Decide the trust type (family or unit).
- Decide on the trustee (individuals or company).
- Identify the appointor/principal (the person with the power to replace the trustee) and succession plan.
- Confirm the settlor (and ensure they are not a beneficiary).
Cost: Advisory session(s) and initial scoping time. Strong scoping keeps drafting clean and avoids later amendments.
Step 2: Draft The Trust Deed
Your deed should be tailored to how you’ll actually operate. For example, include distribution mechanics aligned to your accountant’s tax strategy, powers to admit new beneficiaries (or unit holders), and robust clauses to manage disputes and changes.
Cost: Drafting and revisions. Consider the long‑term picture so you don’t pay for frequent changes later.
Step 3: Incorporate The Corporate Trustee (If Using)
Set up your trustee company, adopt a suitable constitution, appoint directors, and issue shares. Keep the company “clean” by using it only as trustee of the trust (reducing the risk of mixing roles or assets).
Cost: Company registration, ASIC fee, and documentation (constitution, registers, resolutions). You may opt for a bespoke Company Constitution to suit your governance needs.
Step 4: Execute The Trust Deed
The deed is signed by the trustee and dated. The settlor pays the nominal settlement sum and then has no further involvement.
Cost: Minor execution costs (e.g. signing and certified copies). If witnessing or remote execution rules apply in your state, follow them carefully.
Step 5: Attend To Revenue And Tax Steps
Apply for the trust’s ABN and TFN, open a trust bank account, and set up bookkeeping. If any assets are being transferred in, check whether state duty applies before you move them.
Cost: No fee for ABN/TFN applications; potential state revenue charges if dutiable property is transferred.
Step 6: Put Supporting Documents In Place
Depending on your structure, you may need a Unitholders Agreement (for unit trusts), internal resolutions, initial loan or gift documentation, or service/supply contracts for the operating business. If you’ll adjust deed settings later (e.g., appointors or powers), factor in the cost of a future Deed of Variation.
Cost: Drafting and execution of each supporting document (these are often fixed‑fee if scoped upfront).
Budget Checklist
- Legal advice and deed drafting (family or unit trust)
- Corporate trustee setup (company registration, constitution, ASIC fee)
- ABN/TFN for the trust (no ATO fee, but setup time)
- Bank account setup and bookkeeping software
- State revenue checks (duty on property transfers if applicable)
- Supporting documents (e.g., loan agreements, Unitholders Agreement)
- Contingency for post‑setup tweaks (e.g., a deed variation)
Ongoing Costs, Variations And Hidden Fees
Setting up the trust gets you to the start line. Make sure you budget for the running phase as well.
Annual Essentials
- Accounting and tax for the trust (including distribution resolutions before year end)
- ASIC annual review fee for the corporate trustee company (if applicable)
- Record‑keeping and minute‑taking for trustee decisions
When Deeds Need Updating
You may need a deed amendment (usually via a Deed of Variation) if laws change, you alter distribution policies, add or replace an appointor, or expand to new activities not clearly permitted by the current deed. Variations require careful drafting to avoid triggering tax or duty issues.
Bringing In Investors Or Partners
If you operate through a unit trust and plan to onboard new investors, you’ll likely need to issue or transfer units and update your Unitholders Agreement. For family trusts, admitting external parties often requires a broader restructure-your accountant and lawyer can map this out to minimise cost and risk.
Banking, Finance And Guarantees
Lenders may ask for documents like trustee resolutions, updated registers, or personal guarantees. If you’re anticipating finance, factor in the cost of preparing those papers and negotiating any finance‑related documents early, rather than under time pressure.
If You Use A Company To Own Shares Or IP
It’s common for a trust to hold shares in an operating company or to separate assets like intellectual property. Where the trust beneficially holds shares, keep governance clean across both entities. Your trust deed and company constitution should work together so decision‑making is consistent and practical.
If you’re building that structure, make sure you’ve thought through control rights at both levels-and consider whether the trust should beneficially own shares directly or through an interposed entity. As a starting point, review how beneficial ownership via a trust works in practice.
How Much Should You Budget Overall?
Because each trust is tailored to different commercial and tax objectives, there isn’t a single price tag for “the cost to set up a family trust” or “how much to set up a trust in Australia.” Instead, use this approach:
- Price the core: deed drafting + advice.
- If using a corporate trustee, add company setup + current ASIC fees.
- Add any expected supporting documents (e.g., loan agreement, Unitholders Agreement).
- Include a small contingency for adjustments after signing (it’s common to refine beneficiary classes or appointor provisions early on).
This gives you a realistic, line‑by‑line budget that reflects your structure-rather than a one‑size‑fits‑all figure that may not fit your needs.
Key Takeaways
- The cost to set up a trust comes from the deed drafting and advice, whether you appoint a corporate trustee, any state revenue implications on transfers, and supporting documents you need at launch.
- Family trusts (discretionary) are common for owner‑operators, while unit trusts suit multi‑investor ventures-each has different control settings and cost implications.
- A corporate trustee adds setup and ASIC review fees, but often delivers cleaner control, simpler changes, and better administration over the life of your business.
- Plan your budget step‑by‑step: deed + advice, company setup (if any), ABN/TFN, banking, and essential supporting documents like a Unitholders Agreement for unit trusts.
- Expect ongoing costs for accounting, ASIC annual reviews (if you have a corporate trustee), and occasional updates via a Deed of Variation as your business evolves.
- Getting the structure and deed right from day one reduces the risk of expensive fixes later-especially if you’ll raise capital, expand, or acquire assets through the trust.
If you’d like a consultation on the best trust structure for your business and an upfront, tailored cost to set it up, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.
