Business Structures & Setup
Unit Trust Establishment
A unit trust provides fixed, proportional entitlements to income and capital — making it the preferred structure for joint ventures, investment syndicates, and arrangements where equal or defined ownership is required. PHC & Associates handles the full establishment process including deed preparation, unit holder agreements, and ATO registration.
1000+
Structures Set Up
CPA
Certified
Fixed
Entitlement Structures
What's Included
Everything Covered in This Service
Unit trust deed preparation with correct unit class structure
Unit holder register establishment and initial unit allotment
Unit holder agreement — rights, obligations, and transfer restrictions
TFN and ABN registration for the trust
GST registration if required
Trustee appointment — individual or corporate
Stamp duty advice for unit transfers in relevant states
Annual income distribution and unit register maintenance
Key Concepts
What You Need to Know
Understanding the essentials helps you make better decisions and ask the right questions.
Unit Trust vs Discretionary Trust
A unit trust has fixed entitlements — each unit holder receives income and capital in proportion to their units held. There is no discretion. A discretionary trust has total flexibility but no fixed ownership. Unit trusts are preferred where ownership proportions must be defined and locked in.
Unit Trusts for Joint Ventures
When two or more parties invest together, a unit trust gives each party a defined, legally protected share of income and capital. This is more transparent and legally secure than an unincorporated joint venture.
Why a Unit Holder Agreement Matters
A unit holder agreement governs how decisions are made, how units can be transferred or redeemed, what happens when a unit holder wants to exit, and how disputes are resolved. Without one, the trust deed alone may be insufficient.
Stamp Duty on Unit Transfers
In some states (particularly Victoria and NSW), transfers of units in a trust that holds dutiable property may attract stamp duty. This is an important consideration in property investment structures and must be assessed before setup.
Why It Matters
Why This Matters for Your Business
The decisions you make at setup have long-lasting consequences — financially, legally, and operationally.
Fixed Ownership Provides Legal Certainty
In joint ventures and investment structures, all parties need certainty about their share of income and capital. A unit trust provides a legally documented, proportional ownership structure that protects all participants.
Easier to Admit New Investors
Issuing new units to additional investors is straightforward in a unit trust — without triggering CGT for existing unit holders (subject to structuring). This makes unit trusts preferred for investment syndicates.
Separation of Investment from Operations
A unit trust holding property or investments can be separate from any operating company or trust — keeping investment assets protected from business risk.
Cleaner Exit Mechanism
Unit holders can exit by selling their units or having them redeemed by the trustee — a cleaner mechanism than unwinding a partnership or extracting capital from a company.
Stamp Duty Planning is Critical
Unit trust structures involving property require stamp duty advice upfront. Getting this wrong — or restructuring later — can trigger significant unexpected duty costs.