Thinking about using a trust for your business or investment structure? You’re in good company. Trusts are widely used in Australia for asset protection, flexible distributions and succession planning - but working out which registrations and numbers you actually need (ABN, TFN and ACN) can feel confusing if it’s your first time.
In this guide, we’ll break down how trusts work in plain English and clarify when a trust needs an Australian Business Number (ABN), a Tax File Number (TFN), and an Australian Company Number (ACN). We’ll also step through how to set things up correctly from day one so you’re compliant and ready to operate.
With the right structure and registrations in place, you can move forward with confidence. Let’s walk through it together.
What Is A Trust And Who’s Involved?
A trust is a legal relationship (not a separate legal entity) where a trustee holds and manages property for beneficiaries under the terms of a trust deed. Many families and business owners use trusts because they can separate control and ownership, provide asset protection, and offer distribution flexibility.
Key Roles
- Settlor: Establishes the trust by contributing a nominal settlement sum. Typically, the settlor takes no further role.
- Trustee: Controls and administers the trust property. The trustee can be an individual or a company (a “corporate trustee”).
- Appointor/Principal: Often has the power to appoint or remove the trustee. Not every trust has this role, but many do.
- Beneficiaries: The people or entities who may receive income or capital from the trust.
Two common trust types you’ll see in a business context are:
- Discretionary (Family) Trust: The trustee decides who among a class of beneficiaries receives distributions and in what amounts.
- Unit Trust: Beneficiaries hold fixed “units” (similar to shares), and distributions are usually proportional to unit holdings.
If you’re still weighing up whether a trust is right for you, it’s worth understanding how trusts in Australia can support asset protection, control and tax planning in a general sense.
Do Trusts Need An ABN, TFN Or ACN?
Short answer: most trading trusts will need an ABN and a TFN, but a trust itself never gets an ACN. Here’s how it breaks down and what it means in practice.
ABN (Australian Business Number)
If your trust is carrying on an enterprise in Australia - for example, selling goods or services - it generally needs an ABN. An ABN allows you to issue compliant tax invoices, register for GST (if required), and interact with suppliers, customers and government agencies.
Whether an ABN makes sense depends on what the trust actually does. Many owners consider the advantages and disadvantages of having an ABN before applying. If you’ve already applied and run into issues, you can review typical eligibility requirements and, once registered, keep an eye on your status over time.
TFN (Tax File Number)
Most trusts need a TFN so the trustee can meet tax obligations such as lodging trust tax returns and reporting distributions to beneficiaries. You apply to the Australian Taxation Office (ATO) for a TFN for the trust after the deed is properly executed and the trustee is appointed.
There are limited scenarios where a trust may not be required to lodge a tax return (and therefore may not need a TFN), but in practice, if the trust will earn income or make distributions, a TFN is expected.
Important: Sprintlaw provides legal services. We don’t provide tax or accounting advice. Always check your specific tax position with a registered tax or accounting professional.
ACN (Australian Company Number)
A trust never has an ACN. Only companies receive ACNs when registered with the Australian Securities and Investments Commission (ASIC).
If your trustee is a company (a common choice for risk management and administration), that company will have its own ACN because it is a separate legal entity. Contracts and invoices then identify the company “as trustee for” the relevant trust. For example: “ABC Pty Ltd ACN 123 456 789 as trustee for The Smith Family Trust.”
How To Set Up A Trust In Australia (Step-By-Step)
Getting the foundation right will make your ongoing compliance and day-to-day operations much easier. Here’s a simple roadmap.
1) Choose The Trust Type And Prepare The Deed
Decide whether a discretionary trust, unit trust or another structure fits your goals. Your trust deed is the rulebook: it sets who the beneficiaries are, the trustee’s powers, how income and capital can be distributed, and how changes can be made over time.
Because this document governs key decisions for years to come, it’s important it’s tailored to your commercial and family circumstances.
2) Decide On The Trustee (Individual Or Corporate)
Many founders choose a corporate trustee to separate personal assets from trust liabilities and to streamline succession planning. If you go down this path, you’ll need to incorporate the company, ensure you meet Australian-resident director requirements, and adopt an appropriate Company Constitution.
If more than one person owns the corporate trustee (or you expect investors later), a Shareholders Agreement can help set clear decision-making, dispute resolution and exit rules at the company level. For unit trusts, it’s also common to put a Unitholders Agreement in place to align rights and obligations between unit holders.
3) Execute The Trust Deed Properly
Sign and date the deed in line with the execution rules that apply in your state or territory (and the deed’s own execution clause). Many deeds can be signed electronically, but check the rules that apply to your situation and document type - this quick overview of wet-ink versus electronic signatures explains the basics.
Some states and territories impose stamp duty or require stamping/recording within a set timeframe for trust deeds. Requirements and fees vary by jurisdiction and by the type of property involved, so check your local revenue office deadlines early to avoid penalties.
4) Apply For The Trust’s TFN And (If Trading) ABN
Once the trust is created (that is, the deed is properly executed and the trustee is in place), apply to the ATO for the trust’s TFN. If the trust will carry on an enterprise in Australia, apply for an ABN as well and register for GST if you meet (or plan to meet) the current GST turnover threshold or want to claim GST credits.
5) Open A Bank Account In The Trust’s Name
Keep trust money separate from personal and other business funds. Banks will usually request identification, a certified copy of the trust deed and trustee details. If your trustee is a company, you may also need the ACN and a copy of the constitution.
6) Put Governance And Records In Place
Maintain trustee minutes for key decisions such as distributions, borrowings and major contracts. Keep financial records and distribution statements tidy - this helps avoid ATO scrutiny and keeps beneficiaries informed.
As circumstances evolve, you may need to change the deed (for example, to update the appointor or add beneficiaries). Use a formal instrument such as a Deed of Variation and follow the deed’s variation power and any state/territory requirements.
Registrations, Names And Ongoing Compliance
Beyond the core numbers (TFN and ABN), there are a few practical registrations and compliance steps most trusts will encounter if they trade.
Business Names And Branding
If you’ll operate under a name other than the trustee’s legal name (for example, a marketing name), register that business name with ASIC. This applies whether your trustee is an individual or a company, and it’s separate from the trust’s name. If you’re weighing up naming and identity issues, this explainer on business name vs company name is a helpful primer.
To protect your brand, consider registering trade marks for your business name, logo or key product names. Owning a trade mark strengthens your position if someone else tries to use a confusingly similar brand.
GST, PAYG And Payroll
- GST: Register if your GST turnover meets or is likely to meet the current threshold (or consider voluntary registration if it’s commercially useful).
- PAYG Withholding: If you’ll employ staff or engage certain contractors, register for PAYG and meet your Fair Work and tax obligations.
- Payroll Tax: Check your state or territory’s thresholds and group provisions if you have multiple entities.
Reminder: Sprintlaw doesn’t provide tax advice. A registered tax or accounting professional can guide you on GST, PAYG and payroll tax for your situation.
Record-Keeping And Distributions
Before the end of each financial year, the trustee should consider and resolve distributions to beneficiaries in line with the deed. Keep distribution resolutions, accounts and statements in order. Accurate records support correct tax outcomes and reduce the risk of disputes.
When The Trustee Is A Company
Keep ASIC details up to date, pay the annual review fee and follow company governance processes. Make sure your Company Constitution and board approvals line up with how you’ll execute contracts (for example, signing leases, loans or major supply agreements “as trustee for” the trust).
Do Trusts Ever Need An ACN?
This is a common area of confusion. A trust itself never has an ACN. If you use a corporate trustee, the company has the ACN because it’s registered with ASIC as its own legal entity. That ACN then appears on documents where the company acts “as trustee for” the trust.
If you use an individual as trustee, there is no ACN involved at all. You’ll operate with the trust’s ABN (if relevant) and TFN, and contracts will be in the individual trustee’s legal name “as trustee for” the named trust.
Practical Tips
- Using an existing company: You can appoint an existing company as trustee. Check the company’s constitution accommodates trustee activities, confirm all directors consent, and consider a Shareholders Agreement if ownership is shared.
- Multiple trusts in a group: It’s common to separate operations and asset-holding in different trusts. Each trust should have its own deed, TFN/ABN (if trading), bank account and governance records. If one corporate trustee will act for multiple entities, make sure your board processes are clear about the capacity in which the company is acting for each decision.
- Third-party requests: Banks, landlords and lenders often ask for the trust deed, corporate trustee constitution and proof of ABN/TFN. Keep documents consistent - names and details should align across deeds, registrations and contracts to avoid delays.
- Plan for change: If you expect to add founders, raise capital or restructure, choose a setup that supports where you want to be in 1–3 years. For corporate trustees, think ahead about director residency, future share issues and governance rules to avoid rework later.
Key Legal Documents For Trusts
- Trust Deed: Establishes the trust and sets the rules for trustee powers, beneficiaries and distributions. This should be professionally prepared and executed correctly.
- Company Constitution (if using a corporate trustee): Governs how your trustee company operates and signs documents. A clear and up-to-date Company Constitution helps avoid authority and execution issues.
- Shareholders Agreement (corporate trustee): If more than one person owns the trustee company, a Shareholders Agreement sets decision-making, dispute resolution, share transfers and exits at the company level.
- Unitholders Agreement (unit trusts): Aligns unit holders on voting, distributions, transfers and governance. See Unitholders Agreement.
- Deed Of Variation: Use a formal Deed of Variation to lawfully update the trust deed when circumstances change (following the deed’s variation power and any revenue office requirements).
- Trading Agreements And Policies: If the trust operates a business, consider tailored customer terms, supplier contracts, and core policies (for example, website terms and a privacy framework) to manage commercial and legal risk.
You won’t necessarily need every document above, but most trading trusts will require several. The key is to ensure your documents work together and reflect how you actually operate.
Key Takeaways
- A trust is a legal relationship - not a separate legal entity - where a trustee holds assets for beneficiaries under a deed.
- Most trading trusts need an ABN, and most trusts that earn income or make distributions need a TFN; a trust itself never has an ACN (only companies do).
- If you use a corporate trustee, the company gets the ACN and signs contracts “as trustee for” the trust; if an individual is trustee, there’s no ACN involved.
- Set up properly from day one: choose the trust type, appoint the trustee, execute the deed correctly, apply for the TFN (and ABN if trading), and open a dedicated bank account.
- When a corporate trustee is involved, put strong company governance in place - an appropriate Company Constitution and, where relevant, a Shareholders Agreement - to support smooth decision-making.
- Stamping and revenue office requirements for trust deeds are state-based. Check local rules and deadlines early to avoid penalties.
- For tax registrations and thresholds (GST, PAYG, payroll tax), speak with a registered tax or accounting professional to make sure your trust is compliant.
If you’d like a consultation about setting up a trust or getting the right ABN, TFN and corporate trustee in place, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
