TFN Reporting Changes for Closely Held Trusts from 1 July 2026

Australian trustees of closely held trusts should be aware of an important change to TFN reporting requirements from 1 July 2026.

What changed?

Up to 30 June 2026, trustees of closely held trusts were generally required to lodge quarterly TFN reports for beneficiaries. Beneficiaries were also required to quote their Tax File Number (TFN) to the trustee before receiving a payment or becoming entitled to trust income.

If a beneficiary did not quote their TFN, the trustee was required to withhold tax at the top marginal tax rate.

From 1 July 2026

Trustees of closely held trusts are no longer required to lodge quarterly TFN reports.

Instead, beneficiary TFNs will now be reported through the trust’s Statement of Distribution.

Additional labels will also be introduced in the trust tax return from 2027 to cover situations where a beneficiary has not quoted their TFN.

Importantly, the change does not remove the existing TFN withholding obligations. Trustees may still need to withhold tax where a beneficiary has not provided their TFN.

What does this mean for trustees?

If you operate a family trust, discretionary trust or other closely held trust, it is important to make sure your trust records, beneficiary information and tax reporting processes are up to date.

At Gavin Ma & Co, we assist Australian businesses, family groups and trustees with:

✓ Trust tax returns
✓ Family and discretionary trust compliance
✓ Beneficiary distributions
✓ TFN and tax reporting requirements
✓ Tax planning and compliance
✓ Ongoing accounting and taxation advice

Need help with your trust’s 2026–27 tax compliance?

Contact Gavin Ma & Co to discuss your trust tax and accounting requirements.

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