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Designated private trust

Determining a designated private trust

A trust is a designated private trust unless:

  • all three of the following sub-conditions are satisfied:
  • the trust is a fixed trust,     More ?
  • the units in the trust are held by 50 or more persons, and
  • the trust was not created or operated under a scheme that was entered into to gain a Veterans' Affairs or Social Security advantage, or

Once it has been determined that the trust is a designated private trust, then the issue of who controls the assets and income of the trust and the percentage of control to be attributed to the individual(s) can be decided    

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Units in relation to a trust, include a beneficial interest, however described, in the property or income of the trust.

A scheme means:

  • any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings, or
  • any scheme, plan, proposal, action, course of action or course of conduct, whether there are 2 or more parties or only one party involved.

A fund is a complying superannuation fund for the purposes of section 52ZZB of the VEA, at a particular time if:

  • that time occurs during a particular tax year of the fund, and
  • under section 45 of the Superannuation Industry (Supervision) Act 1993

  • the fund is a complying superannuation fund for the purposes of Part IX of the Income Tax Assessment Act 1936 in relation to that tax year.



An excluded trust is a trust declared in writing by Commission to be excluded from the private trust and company provisions.

Control includes control as a result of, or by means of, trusts, agreements, arrangements, understandings and practices, whether or not having legal or equitable force and whether or not based on legal or equitable rights.