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Trust Compliance

Trust Compliance That Goes Beyond the Tax Return

The Trusts Act 2019 changed everything. Most trustees don't know what they're now required to do — and most accountants aren't telling them. We handle the full picture: tax, governance, and reporting.

Why Trust Compliance Has Changed

The Trusts Act 2019 was the first update to trust law in 60+ years. Here's what it means for trustees.

Enacted 30 January 2021

The first major update to New Zealand trust law in over 60 years. Every trust in the country is affected.

Enhanced IRD Reporting

Under s 59BA of the Tax Administration Act 1994, trusts must now provide detailed disclosure of settlements, settlors (name, DOB, jurisdiction, TIN), and distributions.

Trustees Now Accountable

Trustees are now accountable to beneficiaries in a way similar to how directors are accountable to shareholders — with real legal consequences for non-compliance.

Financial Statements Required

Financial statements to a minimum standard (P&L and balance sheet) are now required. A simple summary of income and expenses no longer meets IRD requirements.

Core Records Must Be Maintained

Trust deed, trustee details, assets and liabilities, minutes of key decisions, records of settlements, and records of distributions must all be maintained and available.

300,000–500,000 Trusts Affected

There are an estimated 300,000–500,000 trusts in New Zealand. Many are not yet compliant with the new requirements. Non-active trusts can declare non-active status (IR633), but most trusts with any activity don't qualify.

Trust Compliance Plans

Transparent, fixed-fee pricing. No surprises.

Trust Essentials

$149+GST/month

$1,788+GST/year

  • IR6 trust income tax return
  • Financial statements (P&L + balance sheet) to IRD minimum standard
  • IRD disclosure preparation (settlor details, distributions, settlements)
  • Annual trustee minutes preparation
  • Annual compliance review against Trusts Act 2019 requirements
  • IRD correspondence

Best for: Family trusts, asset-holding trusts, simple trading trusts

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Recommended

Trust Complete

$249+GST/month

$2,988+GST/year

  • Everything in Trust Essentials
  • Rental property accounting within the trust (income, expenses, depreciation)
  • Beneficiary distribution planning and documentation
  • Trustee governance support (record-keeping, deed reviews)
  • Annual structuring review (is the trust still the right vehicle?)
  • Priority support

Best for: Property trusts, multi-asset trusts, trusts with active trading income

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Setup & One-Off Services

Get your trust's compliance foundation right from the start.

Trust Onboarding

$500+GST (one-off)

  • Trust deed review
  • IRD registration check
  • Initial compliance gap assessment
  • Xero setup for trust accounting

Waived for clients who also have a Foundation, Growth, or Strategic business engagement.

Trust Health Check

$750+GST (one-off)

  • Full review of trust deed against Trusts Act 2019 requirements
  • Review of last 2 years' trust returns and financial statements
  • Identification of compliance gaps and governance deficiencies
  • Chattel valuation gap analysis (if trust holds property)
  • Restructuring recommendations
  • Written report with priority action list

Most trusts haven't been properly reviewed since the Trusts Act came into force. Ours is the review that catches what others miss.

What's Included

Comprehensive trust compliance that covers tax, governance, and reporting.

IR6 return preparation and filing
Financial statements to minimum standard
Settlor, beneficiary, and distribution disclosures
Trustee minute preparation
Trust deed compliance review
Record-keeping guidance
IRD correspondence and liaison
Annual Trusts Act 2019 governance check

Is Your Trust Compliant?

A quick self-assessment — 5 questions every trustee should be able to answer.

1Has your trust deed been reviewed since the Trusts Act 2019 came into force?
2Are you preparing financial statements (P&L and balance sheet) each year?
3Are you disclosing all settlements, settlors, and distributions to IRD?
4Are you maintaining trustee minutes for key decisions?
5Do you have a complete record of trust assets, liabilities, and transactions?

If you answered "no" to any of these, your trust may not be compliant. Book a Trust Health Check and we'll identify exactly what needs attention.

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Trust Compliance FAQ

Yes — unless your trust qualifies as non-active with income of $200 or less and meets all other non-active criteria. Most trusts with any activity, rental income, investments, or distributions will need to file an IR6 return and prepare financial statements.

The Trusts Act 2019, enacted 30 January 2021, was the first major update to trust law in over 60 years. Trustees are now accountable to beneficiaries in a way similar to how directors are accountable to shareholders. Enhanced reporting requirements mean you must prepare financial statements to a minimum standard, disclose all settlor details (including name, date of birth, jurisdiction, and TIN) to IRD, maintain core trust records, and keep trustee minutes for key decisions.

Our Trust Essentials plan starts at $149+GST/month ($1,788/year) covering IR6 returns, financial statements, IRD disclosures, trustee minutes, and annual compliance reviews. Trust Complete is $249+GST/month ($2,988/year) and adds rental property accounting, beneficiary distribution planning, governance support, and annual structuring reviews.

Technically yes, but the enhanced reporting requirements under the Trusts Act 2019 and s 59BA of the Tax Administration Act 1994 make it complex. You need to prepare financial statements to IRD minimum standard (P&L and balance sheet), disclose detailed settlor information, document all distributions, and maintain comprehensive trust records. Most trustees find the compliance burden significant enough to warrant professional help.

Non-compliance can result in IRD penalties for late or incorrect filing, personal liability for trustees, and potential claims from beneficiaries under the Trusts Act 2019. The Act strengthened beneficiaries' rights to information, meaning trustees who haven't maintained proper records or met disclosure obligations face increased legal risk.

Book a Trust Health Check

Most trusts haven't been properly reviewed since the Trusts Act 2019 came into force. Our $750+GST Trust Health Check identifies compliance gaps, governance deficiencies, and missed opportunities — with a written report and priority action list.

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