Unit Trust - fixed
Create all the documents you need to set up an Australian Fixed Unit Trust. In this type of trust, the interest in the income or capital of the trust is represented by units and each unit holder's entitlement is fixed. This trust deed can be produced in a form that can be submitted to the NSW Office of State Revenue for classification as a fixed trust under the Land Tax Management Act 1956 (NSW).
The document package for a Unit Trust – Fixed includes:
- the Trust Deed;
- Consent to act as Trustee (and related minutes if the trustee is a company);
- Application for Units;
- Unit Certificate(s);
- Register of Unit Holders;
- a 'pro-forma' letter applying for a private ruling that the trust is a fixed trust for NSW Land Tax purposes (if applicable); and
- an Establishment Kit explaining what to do next.
Time taken to complete 15 minutes.
Cost $ 143.00 (inc GST)
Printing Optional printing, binding and delivery for $ 49.50
Legal Sign-offThe master documents are written in plain language and are signed-off by our lawyers at Maddocks.
What information do you need to order a Unit Trust - Fixed through Cleardocs?
Our checklist outlines all the information you require.
Structure of the Cleardocs Unit Trust - Fixed
The Cleardocs Unit Trust - fixed is a trust under which:
- ordinary units of the one class are created and issued to the unit holders;
- all unit holders have the same rights and obligations; and
- each unit holder is entitled to a proportion of income and capital distributions equal to their proportional holding of all of the total issued units in the trust.
If you require:
- a "non-fixed" unit trust that allows both ordinary units and income units, then order it from Cleardocs — remember, unit holders in a "non-fixed" unit trust cannot claim a tax deduction on borrowing costs associated with their unit holding; or
- unit trust with different classes of units, or if you wish to have special classes of units, then you must seek legal advice. Please contact us so that we can refer you to Maddocks who can provide you with a free estimate of fees for drafting the necessary amendments to the Cleardocs unit trust deed so that it suits your needs.
What is the difference between a unit trust that is "fixed" and one that is "non-fixed"?
The differences between the two types of unit trust are shown in this table:
Classes of unit holders
Who are the unit holders?
Unit trust – fixed
One class of ordinary unit holders, with the same rights to capital and income distributions of the trust in proportion to their unit holdings.
Unit trust – non fixed
1. Ordinary unit holders, with rights to capital and income distributions of the trust in proportion to their unit holdings; and
2. Income unit holders who may, at the trustee's absolute discretion, receive distributions of income of the trust.
If the trust is "non-fixed", then no unit holder or class of unit holders has a fixed (proportional) entitlement to income of the trust. This has important implications — for example, unit holders cannot claim a tax deduction on borrowing costs associated with their unit holding.
Purchasing real estate in NSW?
In New South Wales, a trust which is a "fixed trust" under the Land Tax Management Act 1956 (NSW) pays less land tax on real estate it holds than other kinds of trusts. This is because "fixed trusts" get the benefit of the NSW land tax threshold (and only pay land tax on properties valued above the threshold).
Other trusts may not get the benefit of the threshold - and be liable to pay land tax on land they hold regardless of the value.
This concept of a "fixed trust" under NSW land tax law is different from a "fixed trust" under income tax law. A fixed unit trust may be one but not the other.
To be a "fixed trust" under NSW land tax law, the trust deed must be submitted to the NSW Office of State Revenue and classified as a "fixed trust" under the Land Tax Management Act 1956 (NSW).
The Cleardocs Unit Trust - fixed can be produced in a form that can be submitted to the NSW Office of State Revenue for classification as a fixed trust under the Land Tax Management Act 1956 (NSW). This can help to reduce land tax payable on any real estate the trust holds in NSW.
What other types of trusts does Cleardocs have?
Cleardocs also has these types of trust available:
Which type of unit trust suits you or your client?
If you are not sure which type of unit trust suits you, or your client, then you need to speak with your lawyer or accountant. We can arrange for you to speak with our lawyers at Maddocks, but this is not part of the free legal helpline, so the firm will charge you for its time.
Seek legal advice
The Fixed Unit Trust information here should be considered general in nature, and in no way interpreted as legal advice. You must always seek your own independent legal, accounting and financial advice about your particular situation. The summary on this page is for information purposes only.
Questions or further information
If you have questions:
- about how to use Cleardocs, contact the Cleardocs helpline on 1300 307 343.
- about legal issues, contact the Cleardocs helpline on 1300 307 343. If you need advice, we will arrange for you to speak with a lawyer at Maddocks. The firm provides a free legal helpline in relation to the documents Cleardocs provides. If you require other legal advice in relation to your particular circumstances, then this will be charged for.
- Full range of tailored unit trust set up documents
- Your trust can play a role in your asset protection strategy
- Copy function for address details — saving you typing
- Extensive online help and local phone support
- Lodgement with ASIC 24/7 using our electronic lodgement portal
- Easy to use question interface
- Continue to Cleardocs Change of Trustee Unit Trust