residency of trust

 Author: KaraATO(Community Support)Community Support

6 Mar 2026

Hi KARL3000,

I've discussed your question with one of our subject matter experts.

For trusts that aren't unit trusts, the residency of the trust doesn't depend on where the beneficiaries live. Instead, it depends on two things:

• whether the trustee is an Australian resident, and
• where the central management and control of the trust take place.

In your case:

• you’re an Australian resident and the only trustee, and
• the trust is managed in Melbourne, Australia.

Because of this, the trust would normally be treated as an Australian resident trust. Typically adding two overseas beneficiaries won't change that.

There will be tax impacts when income is paid to overseas beneficiaries, for more info you can read through our guidance on Tax on trust distributions to non-resident beneficiaries.

Also, foreign investment rules may apply if the trust buys property. You can check the residency guidance in the capital gains withholding clearance certificate application form instructions.

These rules can be complex - a registered tax agent may be able to provide advice on your situation or alternatively you can apply for private ruling for your specific situation.

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