nz trust trustee now in austrailia

 Author: JayATO(Community Support)Community Support

12 Feb 2026

Hi @Debjane,

This is a complex situation that depends on several factors specific to your circumstances. When all trustees of a trust become Australian residents, the trust's residency status can change, which affects how it's taxed in Australia.

A trust is generally considered a non-resident trust if, for the entire income year, it has only non-resident trustees and its central management and control is outside Australia. Since you're now the only trustee and you've been in Australia for 10 years, the trust's residency status needs to be assessed.

If the trust is now considered an Australian resident trust, it will be taxed on its worldwide income. There may also be implications for:

• how the trust's net income is distributed and taxed to beneficiaries
• capital gains tax on any assets held by the trust
• reporting obligations in both Australia and New Zealand
• your obligations as trustee to comply with Australian tax law.

The decision about whether to dissolve the trust isn't something we can advise on, as it depends on your personal circumstances, the trust's assets, and your retirement plans. However, you'll need to understand the tax implications of either keeping or dissolving the trust.

We recommend you speak with a registered tax professional who can assess the trust's residency status, the tax implications, and help you understand your options before you retire. You may also want to seek advice from a legal professional about the trust structure itself.

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