There were just over 1 million trusts registered in Australia in the 2023 financial year, latest available data from the ATO shows, delivering total business income (TBI) of almost $489.5 billion. That averages $478,798.78 earned by every single trust that year. Earnings are likely to be even higher today.

With more than 1 million trusts operating in Australia, is it time to weigh up whether a family trust is right for you? Credit: Simon Letch

Like all things investing, though, trusts come with their own set of risks and limitations. Let’s explore their pros and cons to help you calculate whether the numbers add up in your favour.

Benefits of operating a trust

When it comes to the potentially lucrative traits of investment trusts, chief among them are:

Tax-friendliness. Trusts

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