Are you ready for tax time? Do you want to know how to lodge your trust tax return in 2025? Need the trust tax return instructions 2025? Rest assured, this guide will take you through the process. Whether you prefer traditional paper forms or modern software, this is how you can get started.
What’s Covered:
Trust Tax Return 2025 Basics
Currently there is only documentation to lodge your 2024 return. This is normally updated for 2025 around May.
Trustees must complete and lodge a mandatory document, the Trust Tax Return, with the Australian Taxation Office (ATO). The reason for this is that it aids the ATO to keep track of the trust’s income, deductions, and the income distributed to beneficiaries throughout the financial year.
Do all trusts have to lodge a tax return? In general, yes. If a trust earns income, the trustee must lodge a Trust Tax Return. This applies even if all the income is distributed to beneficiaries, or if the trust makes a loss.
Even if a trust doesn’t earn any money in a financial year, it might still need to lodge a return. It’s always best to check with the ATO or seek professional advice to make sure you’re meeting all legal requirements. While the rules may initially appear complex, understanding them makes the process less daunting.
Here’s a draft section for preparing for your trust tax return 2025, written in British English:
Preparing for Your Trust Tax Return 2025
Before you begin lodging your trust tax return, proper preparation will save you considerable time and help ensure accuracy. Here’s what you’ll need to gather:
Essential Financial Records
- Trust deed and any amendments
- Bank statements for the entire financial year
- Investment income statements
- Rental property income and expenses
- Business activity statements
- Records of distributions to beneficiaries
- Asset purchase or sale documentation
- Previous year’s trust tax return
Income Documentation
- Interest earnings from bank accounts
- Share dividend statements
- Managed fund annual tax statements
- Rental income records
- Business income documentation
- Capital gains or losses records
- Foreign income details
Deduction Records
- Investment-related expenses
- Property maintenance costs
- Insurance premiums
- Professional fees (accounting, legal, etc.)
- Office expenses for trust management
- Asset depreciation schedules
Distribution Details
- Beneficiary details (including Tax File Numbers)
- Minutes of trustee meetings regarding distributions
- Records of distributions made
- Present entitlement documents
- Any streaming of capital gains or franked dividends
Important Tip: Consider setting up a dedicated folder structure, either physical or digital, to organise these documents throughout the year. This systematic approach will make the tax return process significantly more manageable.
Additional Preparation Steps
- Review any changes to your trust’s circumstances over the past year
- Ensure all trust bank accounts are reconciled
- Verify that all required annual trust resolutions were made before 30 June
- Check that your accounting software is up to date
- Consider booking an appointment with your accountant well in advance of the deadline
Remember: The ATO may request supporting documentation up to five years after lodgement, so maintain comprehensive records for at least this period.
Choosing the Right Method for Lodging Your Trust Tax Return
When lodging your Trust Tax Return for 2025, you don’t have many options if you do it yourself. There is an old-fashioned way of filling out the paper-based Trust Tax Return form. You lodge this by posting the form to the ATO address specified on their ‘How to Lodge and Pay‘ page.
But if you’re more comfortable with technology, there’s good news for you. Numerous software packages now make it easy to submit your tax return online. Consider using software like Simple Invest 360 – Investor Edition, LodgeiT Trust Tax Return, or Class Trust. These platforms can save you time and reduce the chance of making mistakes. I personally recommend Simple Invest 360.
Understanding the Deadlines
When does your trust tax return need to be lodged? For most trusts, the date is 31 October. But there are exceptions.
Trusts with income over $10 million follow different deadlines. These deadlines vary based on whether they are taxable or not. If your latest return had a tax liability of $20,000 or more, you get extra time until 31 March. The final date for other trusts not covered above is 15 May.
How to Follow the Trust Tax Return Instructions 2025
Before you dive in, I recommend you check out the ATO’s What’s New page. It gives an overview of any changes in legislation that might impact your return.
For example, last year, they’re discussing the proposed Small Business Skills and Training Boost and the Small Business Technology Investment Boost. It’s important to stay informed as these could affect your return.
Finally, don’t forget to refer to the ATO’s Instructions to complete the trust tax return. It gives clear guidance on what to enter in each section of the return.
In Summary
There you have it, a simple guide to lodging your Trust Tax Return for 2025. Whether you use paper forms or online software, I hope this information has been helpful. Remember, tax doesn’t have to be taxing. Keep an eye on the deadlines and stay informed about new legislation. Happy tax filing!
Ready to learn more?
Check out our guides, for more information covering Trusts and taxes:
