About the Unit Trust

A Unit Trust is cheaper and more flexible than a company. A company costs $1,500 to set up. The government charges lots of money to keep a company going each year. The Unit Trust doesn't suffer this government intervention.

In a company you get shares. In a Unit Trust you get Units. The number of Units you hold determines your share of the income and voting power.

You or your Family Trust can own the Units.

According to CCH Australian Business Advisers Guide, "Not so long ago, unit trusts were primarily used to gather together investors to pool their (usually) small sums with a (usually corporate) trustee for the purposes of investment. In recent years the importance of unit trusts has grown to such an extent that they have in many respects supplanted companies as the most common vehicle through which business is conducted in the non-public company area."

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