How Much Does It Cost To Set Up A Trust In Australia?

Choosing the right business structure can be one of the highest-impact decisions you make as a founder.

If you’ve been asking how much it costs to set up a trust in Australia, you’re probably weighing up whether a trust structure will help you with tax administration, asset protection, succession planning, or investor/family arrangements as you grow.

The tricky part is that “trust setup costs” aren’t always a single fixed number. The cost depends on what type of trust you need, who will be involved (individuals, companies, beneficiaries), what your business is actually doing, and how cleanly you want it documented from day one.

Below, we’ll break down the typical cost components, the practical setup steps, and the legal considerations small businesses and startups should think about before committing to a trust.

Note: This article is general information only and isn’t legal or tax advice. Trusts can have significant tax and duty implications depending on your circumstances, so it’s a good idea to speak with a lawyer and a qualified accountant before you proceed.

What Are You Paying For When You Set Up A Trust?

A trust isn’t a separate legal “entity” like a company. It’s a legal relationship where a trustee holds assets for the benefit of beneficiaries, following rules set out in a written trust deed.

When you’re paying to “set up a trust”, you’re usually paying for a combination of:

• Structuring advice (choosing the right trust type and set-up)
• Drafting the trust deed and any related documents
• Setting up a trustee (often a company)
• Registrations (ABN/TFN, sometimes GST and other registrations)
• State-based duties/administration depending on the state and the trust’s activities
• Ongoing compliance (tax returns, accounts, trustee decisions/distributions)

If you’re building a business (rather than holding passive investments), it’s also common that a trust needs extra “fit-for-purpose” legal documents around ownership, control, decision-making, and dealing with customers, suppliers, and staff.

Common Trust Types Used By Small Businesses

Not all trusts are created for the same purpose, and the trust type will affect complexity and cost.

• Discretionary (family) trust: Often used by family-run businesses for flexibility in distributing income to beneficiaries (subject to the trust deed and tax rules).
• Unit trust: Beneficiaries hold “units” (similar to shares), which can be useful where multiple founders/investors want clearer ownership proportions.
• Bare trust: Usually used to hold a specific asset on behalf of someone else (often for financing/asset-holding scenarios). See bare trust for a practical overview.

Getting the trust type right matters, because “cheap and quick” documentation can create expensive problems later-especially if you’re bringing on investors, applying for finance, or planning to sell the business down the track.

How Much Does It Cost To Set Up A Trust In Australia? (Typical Cost Ranges)

So, what does it typically cost to set up a trust in a real-world small business context?

As a general guide, the total setup cost commonly falls somewhere between $1,500 and $6,000+ depending on complexity. Some straightforward setups may be lower, and more complex business or investor structures can be higher.

Instead of focusing on a single headline number, it’s more useful to break the cost down into the parts you’re likely paying for.

1. Trust Deed Drafting (And Related Legal Documents)

The trust deed is the rulebook. It covers things like:

• who the trustee is and what powers they have
• who can benefit from the trust (beneficiaries)
• how income and capital can be distributed
• appointment/removal of key roles (like the appointor)
• how the trust can be varied and how it ends

Typical cost range: $800 to $3,000+ (depending on whether it’s a template-style deed or tailored drafting and advice).

For startups and scaling businesses, the “related documents” can be just as important as the deed. For example, a unit trust may need clearer governance documents around investor rights and control (especially where units change hands over time).

2. Setting Up A Corporate Trustee (If You Use One)

Many business owners choose a company as trustee rather than an individual trustee. This can help with continuity (people change; companies continue) and can reduce personal risk exposure in some scenarios.

If you set up a corporate trustee, you may pay for:

• company registration
• director/shareholder setup
• a Company Constitution (or adoption of replaceable rules)

Typical cost range: $500 to $2,500+ depending on whether you DIY the admin, use an accountant, or bundle it with legal drafting/advice. (Government fees can change over time, and professional fees vary.)

If you already have a company that will act as trustee, this component may be lower-although it’s still worth checking whether your existing company’s structure and constitution actually fit the trustee role.

3. Registrations: ABN, TFN, GST (And Record-Keeping Set-Up)

A trust operating a business will typically need:

• a TFN (Tax File Number) for the trust
• an ABN (Australian Business Number) if it’s carrying on an enterprise
• GST registration if required

Typical cost range: $0 to $1,500+ depending on who handles it (DIY vs accountant/bookkeeper/legal support) and how much back-and-forth is required.

It’s also important to get the fundamentals right around identifiers and registrations, particularly where the trust has a corporate trustee. For a practical breakdown of what you’ll generally need, see trust requirements.

4. State-Based Duties/Administration (Where Relevant)

Depending on the state/territory and what the trust is doing, there can be duties, fees, or administrative steps to complete at (or after) setup. In many cases, simply signing a trust deed won’t trigger significant duty-but certain transactions involving a trust can (for example, transferring dutiable property to a trust, or changing interests in a way the relevant state revenue office treats as dutiable).

Typical cost range: minimal to a few hundred dollars for basic administrative steps, but it can become significant where an asset transfer or restructure triggers duty. Because the rules differ by jurisdiction and the type of asset, it’s worth getting advice that’s tailored to where and how your trust will operate.

5. Accounting And Ongoing Compliance Costs (Often The Bigger Long-Term Cost)

Some founders focus on the upfront cost to create a trust and forget that the ongoing cost of running the structure properly can be more significant over time.

Ongoing costs often include:

• annual financial statements and trust tax return preparation
• company compliance for the corporate trustee (ASIC fees, minutes/resolutions)
• distribution resolutions and record-keeping each financial year
• bookkeeping/payroll if the trust employs staff

Typical annual cost range: $1,500 to $6,000+, depending on turnover, transaction volume, and complexity (and whether you also operate related entities).

Key Legal Decisions That Change The Cost (And The Risk)

The reason trust setup pricing varies so much is that small choices in structure can have big legal and commercial consequences.

Here are the decisions that most often affect both cost and complexity.

Do You Need A Corporate Trustee Or An Individual Trustee?

An individual trustee can look simpler upfront, but may create practical headaches later (for example, if the individual changes, becomes incapacitated, or you need clearer separation between personal and business roles).

A corporate trustee can cost more to set up, but it’s often chosen because it can:

• improve continuity and administration
• make governance cleaner (directors control the trustee company)
• reduce “messiness” if ownership/control changes

This is a “fit” question as much as a cost question. If you’re planning to scale, apply for funding, or bring on partners, it’s usually worth thinking about the trustee structure early.

Who Will Control The Trust (Appointor/Director Control)?

Control is everything with trusts.

Depending on the deed, a person (or group) may have special powers, like appointing/removing the trustee. If this isn’t documented clearly, disputes can arise later-especially in family businesses or founder relationships.

Some roles you may see include:

• Settlor (the person who establishes the trust, typically with limited ongoing involvement)
• Appointor (often has power to replace the trustee)
• Guardian/Protector (in some deeds, provides oversight)

The role of the settlor can be particularly important to get right from the start. If you want a deeper explanation of why, see settlor.

Is This A Trading Trust Or An Asset-Holding Trust?

Many small businesses use a trust to run the trading operations (a “trading trust”). Others use a trust to hold valuable assets (like IP, equipment, or property) and then license/lease them to the trading business.

Asset-holding structures can help with risk management, but they add complexity and often need more documents (licences, leases, inter-entity agreements). This can increase upfront legal costs, but it may reduce the risk of losing core assets if the trading business is sued or becomes insolvent.

Will You Have Multiple Founders Or External Investors?

If there are multiple founders or you want to bring in investors, you’ll want to think carefully about whether a unit trust structure is more appropriate than a discretionary trust.

Ownership and governance also needs to be documented properly. Depending on the structure, this might involve documents similar in purpose to a shareholders agreement (even if you’re not technically issuing “shares”). If you’re operating alongside a company, an appropriate Unitholders Agreement can help clarify ownership proportions, distributions, exits, and decision-making.

Step-By-Step: Setting Up A Trust For Your Small Business

If you’re trying to plan timelines and budget, it helps to understand what “setting up the trust” usually involves in practice.

1. Confirm What You’re Using The Trust For

Start with clarity around the commercial goal. For example:

• Are you running the whole business through the trust?
• Are you holding assets separately (like brand IP or equipment)?
• Do you need flexibility to distribute income to family members (where legally allowed and appropriate for your circumstances)?
• Do you need fixed ownership percentages for co-founders or investors?

This is where good advice can save you money long-term. A “cheap” structure that doesn’t match your business plan can be expensive to unwind later.

2. Decide On Trustee And Control Settings

You’ll generally decide:

• who the trustee will be (individual or company)
• who will control the trustee (directors/shareholders if it’s a company)
• who has key trust powers (for example, appointor)

If you need a new company as trustee, you may be doing a trust setup and a company setup in parallel. In that case, a structured Company Set Up process can help you get the trustee company established properly.

3. Draft And Sign The Trust Deed

The trust deed should be drafted to match:

• your trust type (discretionary, unit trust, etc.)
• your business model (trading vs asset holding)
• your growth plans (new investors, new beneficiaries, succession)

Once executed, the deed becomes the foundation document for how the trust must operate.

4. Apply For TFN/ABN And Set Up Business Admin

Once the trust exists, you’ll typically apply for:

• TFN for the trust
• ABN (if carrying on an enterprise)
• GST registration (if required)

From an operations perspective, you’ll also want to set up a clean paper trail: bank accounts, accounting software, and a system for trustee resolutions (especially around annual distributions).

5. Put The Right Trading Contracts In Place

Trusts don’t replace the need for good contracts. If your trust is running a business, you’ll often need customer terms, supplier agreements, contractor arrangements, and (if you’re hiring) employment documents.

If you’re employing staff, it’s worth getting an Employment Contract in place early, so expectations are clear and you’re not relying on handshake arrangements as the team grows.

Ongoing Costs And Compliance: What Trust Owners Often Miss

When founders ask about the cost to set up a trust, they’re often thinking about the one-off setup fee.

But to run a trust properly, you also need ongoing compliance habits and documents. These ongoing requirements can be the difference between a trust structure that genuinely helps your business, and a structure that creates admin pressure (or worse, legal/tax issues) at year end.

Annual Trustee Resolutions And Distributions

Trusts generally need clear decisions each financial year about how income is distributed (in line with the deed and tax rules). That usually means preparing trustee resolutions, and keeping them with your records.

Leaving this too late can create stress at tax time, and can lead to disputes if beneficiaries disagree about what was intended.

Corporate Trustee Compliance (If Applicable)

If your trustee is a company, you’ll also need to maintain company compliance, like:

• ASIC annual review fees
• keeping company details up to date
• director resolutions and record-keeping

For many small businesses, a corporate trustee is still worth it-but it’s important to budget for it and keep the paperwork tidy.

Related-Party Transactions And “Cash Moving Around”

It’s common in small businesses for money to move between founders and the business (for example, founders paying expenses personally, or the business covering something temporarily).

With trusts (and especially where a corporate trustee is involved), you want to keep these transactions properly recorded and justifiable. If you’re in a scenario where funds are advanced or repaid, concepts like a director loan (and how it should be documented) can become relevant, depending on the structure.

Scaling Up: When Your Trust Structure Needs A Refresh

Your trust might be set up correctly today, but growth can change what you need. Common triggers to review your structure include:

• bringing on a co-founder or investor
• launching a second brand or product line
• starting to hold valuable IP, equipment, or property
• expanding interstate or internationally
• planning an exit or sale of the business

Sometimes, you may even end up using a group structure (for example, separating operating risk from asset holding). If you’re considering more complex structuring, it’s worth understanding options like holding companies and how they interact with trusts in broader business structures.

Key Takeaways

• If you’ve been asking about how much it costs to set up a trust, the realistic answer depends on the trust type, whether you use a corporate trustee, and how tailored the documents need to be for your business model.
• For many Australian small businesses and startups, total trust setup costs commonly land somewhere between $1,500 and $6,000+, with more complex founder/investor structures costing more.
• Upfront costs usually include drafting the trust deed, setting up the trustee (often a company), and obtaining the trust’s TFN/ABN and other registrations.
• Ongoing costs (accounting, tax returns, trustee resolutions, and corporate trustee compliance) can be the bigger long-term expense, so it’s worth budgeting beyond the initial setup.
• Trust structures can offer flexibility and risk management benefits, but only if control roles and decision-making are documented clearly and operated properly year to year.
• Getting the structure and paperwork right early can save you significant time, cost, and stress later-especially if you plan to scale, raise capital, or sell the business.

If you’d like help setting up a trust for your small business or startup, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.