Compulsory TFN Reporting for Trust Beneficiaries

The Treasury has released draft rules requiring trustees of closely held trusts to report beneficiaries’ Tax File Numbers (TFNs) in the trust tax return, starting 1 July 2026.

When You Need to Report a Beneficiary’s TFN

Trustees must report a beneficiary’s TFN if:

• The beneficiary is entitled to a share of the trust’s income for the year.
• They have provided their TFN to the trustee before the return is lodged.
• The trustee hasn’t already reported it under existing trust tax rules.

Important Timing

The ATO advises that the TFN should be provided by whichever comes first:

• When the beneficiary becomes entitled to their share of income.
• The date the trust return is lodged.
• The due date for the trust return, unless the Commissioner allows extra time.

Changes in the 2027 Trust Tax Return

The 2027 return will include:

• A question asking, “Are you a closely held trust?”
• A “No TFN available” checkbox in the Statement of Distribution section.
• A new software check making the TFN field in the Statement of Distribution mandatory.

These changes are designed to make reporting more straightforward and ensure trustees stay compliant. If you manage a closely held trust, it’s a good idea to start preparing now.