Trust Restructuring Accountant
Deed Variations, Control Changes, CGT Resettlement Review & Structural Reorganizations
Service at a Glance
Personalized scope & lodgementWage earners, investment property owners, CGT, crypto & standard returns
100% online video meetings (Outlook Calendar) or in-person
Direct electronic ATO portal lodgement by Registered Tax Agent
Draft explained and authorized by you before electronic submission
- Pre-lodgement draft walkthrough & written client sign-off
- Extended ATO tax agent lodgement deadlines available
- Transparent upfront quoting & zero lodgement without approval
What does trust restructuring involve?
Trust restructuring means changing an existing trust arrangement rather than simply completing its annual tax return. The work may be narrow - such as replacing a trustee - or broader, such as changing control, ownership interests or the way a family group holds assets.
Scope of Restructuring
Trust restructuring means changing an existing trust arrangement rather than simply completing its annual tax return. The work may be narrow - such as replacing a trustee - or broader, such as changing control, ownership interests or the way a family group holds assets.
Legal & Economic Effect
For tax purposes, the important question is not the label placed on the change but its legal and economic effect. A valid amendment made under an existing power does not automatically create a new trust, but changes can have different tax consequences.
Deed Power Verification
Outcomes depend on the trust deed, the scope of the amending power, and the effect on trust relationships. Legal advice may be required to confirm that a proposed deed amendment is valid.
Substance and Legal Reality Drive Tax Treatment
For tax purposes, the important question is not the label placed on the change but its legal and economic effect. The ATO has published guidance on trust variations and CGT events. A valid amendment made under an existing power does not automatically create a new trust, but some changes can have different consequences depending on the deed, the scope of the power and the effect on trust relationships. Legal advice may be required to confirm that a proposed deed amendment is valid.
When might a trust need restructuring advice?
Trust restructuring advice may be relevant when the current arrangement no longer matches the family, business or investment circumstances. Common triggers include succession planning, retirement of a trustee or appointer, moving to a corporate trustee, admitting or exiting unit holders, simplifying an older structure, responding to a relationship or ownership change, or preparing for a transaction involving trust assets.
a family trust needs governance changes because the people controlling the structure have changed
an individual trustee is being replaced with a corporate trustee or another trustee
the appointer or guardian role needs to change under the trust deed
unit holdings or investor interests in a unit trust are changing
assets may be transferred, sold or moved as part of a wider restructure
the trust has carried-forward losses, family trust elections or other tax history that could be affected by a change in control
an older deed no longer reflects the way the group operates and legal amendments are being considered.
Key tax issues before a trust restructure
A trust restructure can create tax consequences even where there is no immediate cash payment. Depending on the change, the review may need to consider capital gains tax, revenue consequences, GST, trust loss rules, family trust election issues, cost bases, asset ownership and the tax position of beneficiaries or related entities.
Comprehensive Tax Impact Assessment
Reviewing capital gains tax (CGT), revenue consequences, GST, cost bases, and beneficiary tax positions even where no cash changes hands.
Trust Loss Rules & Control Tests
For non-fixed trusts, changes to trustees, appointers, guardians, or beneficiaries affect control tests. Trusts with an FTE require review of income injection test risks.
Asset Movements & Stamp Duty Scope
Moving assets or altering beneficial interests triggers transaction taxes and state duty. We address tax and accounting while coordinating with legal specialists.
Control Tests, Trust Losses & Family Trust Elections (FTE)
For an ordinary non-fixed trust, changes to trustees, appointers or guardians, corporate trustee ownership, beneficiaries, deed terms or unit holdings may be relevant when considering whether control has changed for the trust loss rules. A trust with a valid family trust election is generally an excepted trust for the ownership and control tests, although the income injection test can still apply in some circumstances. The trust type, election status and tax history should therefore be checked rather than assuming every change has the same effect.
If the restructure involves moving assets between entities or creating materially different beneficial interests, transaction taxes and state or territory duties may also need specialist review. Financially Up can address tax and accounting matters within scope, while legal documents and duty advice may require an appropriately qualified legal adviser or other specialist.
Trust variation and CGT resettlement risk
One concern in trust restructuring is whether a variation causes the existing trust to end for tax purposes and a new trust to arise. ATO Taxation Determination TD 2012/21 explains that a change made under a valid power in the trust deed does not, by itself, necessarily cause CGT event E1 or E2. The practical analysis still depends on the legal effect of the change and whether the continuity of the trust is maintained.
Continuity of the Trust Estate
Under TD 2012/21, an amendment that is supported by a valid power in the trust deed generally maintains the ongoing identity and continuity of the trust estate rather than causing a resettlement.
Pre-Execution Review vs Post-Event Fixes
This is why trust restructure tax advice should be obtained before documents are signed. An accountant can identify tax-sensitive features, but the legal validity and interpretation of the deed may need to be confirmed by a lawyer. The goal is to understand the consequences before implementation, not to try to reconstruct the position after the event.
How Financially Up can help
Financially Up can review the existing accounting and tax position, understand the proposed commercial or family objective, identify tax issues that need to be tested, and coordinate the accounting steps associated with the change. If the work is a broader reorganization of a business rather than a trust-specific change, our business restructuring service covers the wider restructuring analysis separately.
Review Accounting & Tax Position
Examining existing ledgers, tax returns, carried-forward tax losses, Family Trust Elections (FTE), and historical resolutions.
Clarify Commercial & Family Objectives
Understanding the family succession goals, governance requirements, risk mitigation needs, or investor changes driving the restructure.
Identify & Test Sensitive Tax Issues
Testing for CGT resettlement exposure, Division 7A triggers, control tests under trust loss rules, and transfer duty implications.
Coordinate Accounting Implementation
Aligning opening and closing asset cost bases, journalizing beneficiary or unit changes, and coordinating with legal draftspersons.
Trust-Specific Scope & Trustee Changes
For trust-specific work, the scope may include reviewing tax history, carried-forward losses, distributions, related-party balances, trust elections, unit holdings and the accounting treatment of any asset transfers. Where the restructure changes the trustee, our Change Trustee service focuses on that process in more detail.
What information should you prepare?
Useful documents typically include the current trust deed and all amending deeds, details of the trustee and appointer, unit or beneficiary information, recent trust tax returns and financial statements, asset and liability schedules, relevant company records for a corporate trustee, loan balances and a clear description of the proposed change.
Current Trust Deed & Variations
The original executed trust deed and all subsequent amending deeds, variations, and schedules.
Trustee & Appointer Details
Full legal names and details of the current and proposed trustee, appointer, and guardian roles.
Unit or Beneficiary Information
Current unit register, beneficiary classes, distribution records, and Family Trust Election documents.
Recent Tax Returns & Financials
The most recent trust tax returns, balance sheets, profit and loss statements, and tax loss schedules.
Assets, Liabilities & Corporate Records
Asset schedules, loan balances, beneficiary loan accounts, and ASIC company records for corporate trustees.
Description of Proposed Change
A clear written outline describing the commercial, family, or operational goals of the proposed restructure.
Why choose Financially Up?
Financially Up Pty Ltd is a registered tax agent with more than 10 years of experience across accounting, taxation, bookkeeping and business advisory work. Our team includes CPA and IPA professionals. We support clients Australia-wide through online appointments and also offer in-person appointments. For trust restructuring, the focus is on understanding the existing tax and accounting position, identifying the implications of the proposed change and keeping the service scope clear where legal or specialist advice is also required.
Registered Tax Agent #26242127
Licensed under the Tax Practitioners Board, ensuring compliant tax position testing and ATO communication channels.
CPA & IPA Qualified Team
More than 10 years of experience across accounting, taxation, bookkeeping, trust administration and business advisory work.
Australia-Wide Appointments
Supporting trustees and families across all states and territories through 100% online video appointments, plus in-person consultations.
Clear Service Scope Boundaries
We focus on understanding existing tax and accounting positions, identifying change implications, and keeping scope clear where legal advice is required.
Discuss Your Trust Restructure Before Implementation
Understand the CGT resettlement risks, tax loss continuity, and deed requirements before executing any variations. Call us at 1300 328 316 or schedule a consultation online.
Complementary Trust Restructuring Services
Connect your restructure with specialized governance and succession solutions.
Change Trustee
Replacing individual trustees, appointing corporate trustees, and asset title transitions.
Appointor Changes
Updating trust appointor or guardian roles, succession planning, and control protection.
Corporate Trustee
Pty Ltd trustee establishment, ASIC annual review compliance, and perpetual asset isolation.
Family Trust Accounting
Discretionary trust accounts, annual distributions, and 30 June resolution timing.
Frequently Asked Questions About Trust Restructuring
Find fast answers to common questions about our individual tax lodgements, deductions, and CPA services.
No. The tax outcome depends on the legal and economic effect of the change. A valid amendment under an existing deed power does not automatically create a new trust for CGT purposes, but asset transfers or more substantial changes can have different consequences. The specific proposal should be reviewed before implementation.