Company and family trust compliance costs: a worked yearly example
What a year of accounting and government fees costs for a typical Australian small business group of a trading company, a family trust and its corporate trustee, with arithmetic shown.
A small business run through a company owned by a family trust typically needs at least three sets of work each year: the trading company's financial statements and return, the trust's accounts, distribution resolution and return, and the individual returns of the people who receive income, plus ASIC fees for each company, including a corporate trustee. In the illustrative example below, the group's yearly compliance cost is roughly two to three times that of the same business run as a sole trader. Whether that is worth it depends on tax, asset protection and succession reasons that need specific advice, and the 2026–27 Budget proposal for a minimum tax on discretionary trusts, if legislated, may change the arithmetic from 1 July 2028.
This guide is part of the checklist for choosing an accountant. All fees are illustrative unless sourced.
The example group
- Trading company (Pty Ltd): runs a small design business, five employees, quarterly BAS, registered for GST.
- Family trust: a discretionary trust that owns all the shares in the trading company.
- Corporate trustee (Pty Ltd): acts only as trustee of the family trust.
- Two individuals: the director and spouse, who receive salary and trust distributions.
The jobs, entity by entity
| Entity | Annual jobs |
|---|---|
| Trading company | Bookkeeping, 4 BAS, STP and super under Payday Super, financial statements, company return, franking, Division 7A review, ASIC annual review |
| Family trust | Accounts, trustee distribution resolution before 30 June, trust return, TFN reporting where relevant |
| Corporate trustee | ASIC annual review, minutes; usually no trading |
| Director and spouse | Two individual returns including salary, dividends and distributions |
The trustee resolution deserves attention. Trustees generally need to decide how income is distributed by the end of the income year, 30 June, and the trust deed sets the rules. Missing or flawed resolutions can cause the trustee to be taxed at the top rate. Accountants usually charge for preparing the resolution and for planning the distribution beforehand.
Worked example: the yearly bill
| Item | Basis (illustrative) | Cost |
|---|---|---|
| Bookkeeping (in-house staff member) | Not charged by accountant | $0 |
| BAS agent: 4 BAS and payroll checks | 4 × 3 hours × $110 | $1,320 |
| Trading company year end, statements, return | 18 hours × $190 | $3,420 |
| Division 7A and franking review | 2 hours × $190 | $380 |
| Trust accounts, resolution, return | 8 hours × $190 | $1,520 |
| Distribution planning meeting before 30 June | 2 hours × $250 | $500 |
| Two individual returns | 2 × $350 fixed | $700 |
| Corporate secretarial for two companies | 2 × $150 | $300 |
| Accountant and agent fees | $8,140 | |
| ASIC annual review, trading company | Proprietary company fee from 1 July 2026, per business.gov.au | $342 |
| ASIC annual review, corporate trustee | Check whether the reduced special purpose company fee applies | See ASIC |
| Accounting software and payroll | $110 a month × 12 | $1,320 |
| Total before tax effect | $9,802 plus trustee company fee |
A sole trader with similar income would need one individual return with a business schedule and the same BAS work. Illustratively, that might total around $3,000 to $4,000. The group costs roughly $6,000 more a year to administer. Test your own estimate with the annual fee estimator.
What changes the bill most
- Money moving between entities. Unpaid trust distributions owed by or to the company, or director loans, create Division 7A work. Keeping a clean paper trail and paying distributions in cash where possible reduces it.
- Late resolutions. If the trustee resolution is prepared after 30 June, the accountant may spend extra time on the consequences.
- Employees in more than one state. Payroll tax thresholds and workers compensation schemes are set by each state and territory, adding returns and registrations.
- Additional entities. A separate company holding property or a bucket company to receive trust distributions adds statements, a return and another ASIC fee.
Is the structure worth its cost?
That is a question of advice, not arithmetic alone. Typical reasons given for a company and trust are asset protection, the ability to distribute income among family members, and succession. Against them are the extra compliance cost above, complexity, and announced policy change: the 2026–27 Budget proposed a minimum 30% tax on discretionary trusts from 1 July 2028, with rollover relief for restructures from 1 July 2027. If legislated, it could reduce the tax advantage of distributing to low-income family members. Treat it as an announcement until the law passes, and see 2026 rules.
How to keep the group's fees down
- Hold all entities in the same software organisation set-up the accountant prefers, with consistent charts of accounts.
- Hold the distribution planning meeting in May or early June, not after 30 June.
- Keep a register of loans between entities and individuals.
- Ask for a group fixed fee covering all entities; see fixed fee vs hourly.
- Review every year whether each entity is still needed; deregistering a dormant company saves its annual fee.
Frequently asked questions
Does a corporate trustee need its own tax return?
A company that acts only as trustee and has no income of its own may not need to lodge a company return each year, but its obligations depend on its activities. Ask your agent and check ASIC's requirements for special purpose companies.
Can one accountant handle the whole group?
Yes, and it is usually more efficient, because the same person sees the movements between entities.
Is the trust's accounting fee deductible?
Fees are generally deductible to the entity that incurs them for its own affairs. Make sure each entity is billed for its own work; see are accountant fees deductible.
How do I compare quotes for a group?
List every entity and return in the scope and ask each firm for a price per entity. See the engagement letter guide.
Sources and where to check
- ASIC — annual review fees, including special purpose company fees
- Australian Taxation Office — trust distributions and resolutions, Division 7A, company tax
- business.gov.au — business structures, 1 July 2026 fee changes and the 2026–27 Budget summary
- Treasury — Budget measures and consultation on trust taxation
- Your state or territory revenue office — payroll tax and duty on restructures
