Unit Trusts & Amendment of Unit Trusts

Unit trusts are being used for an increasing number of purposes. A Unit trust can be a non-fixed unit trust, a fixed unit trust, and can be used for investment purposes or to actively carry on a business.

Self-managed superannuation funds can invest in a unit trust on a limited basis. The trust can either be a non-controlled Section 70E SIS Act trust or an ungeared SIS Regulation 13.22 C unit trust which is unable to borrow.

A trust can be fixed for land tax purposes or for income tax purposes, or both. NSW for example, has peculiar requirements in relation to the creation of a trust which is fixed for NSW land tax purposes. The tests to qualify such a trust as fixed differ from the views expressed by the Commissioner of Taxation as to what constitutes a fixed trust for income tax purposes.

Amendment of unit trusts can also be problematic but we’re here to help. For expert legal advice or information unit trusts, feel free to contact us to chat to an experienced unit trust lawyer. Read more information on Self-Managed Super Fund Trusts or Discretionary Trusts.