AustraliaThe responsible entity of our property trust is charging excessive fees. What can we do?
Unitholders can request information, call a meeting to remove the responsible entity, or apply to ASIC or the court if fees breach the trust deed or Corporations Act requirements.
What the Law Says
The Corporations Act 2001 (Cth) sets strict duties on responsible entities of registered managed investment schemes, including property trusts. It requires transparency about fees, prohibits unreasonable charges, and gives unitholders clear rights to challenge misconduct.
Responsible entities must act honestly and with care and diligence (s. 601FC(1)). They must not make decisions that are not in the best interests of unitholders — including charging fees that are excessive, undisclosed, or inconsistent with the trust deed.
Section 601GA requires the responsible entity to give unitholders a product disclosure statement (PDS) that clearly explains all fees, including performance fees, administration fees, and any other charges. Any fee not disclosed in the PDS or not permitted by the trust deed may be unlawful.
If fees breach the trust deed or the Corporations Act, unitholders may seek removal of the responsible entity under s. 601FC(2), which allows a resolution by unitholders holding at least 5% of votes to call a meeting for that purpose.
ASIC also has powers to investigate and take enforcement action. Under s. 601FD, ASIC may require the responsible entity to provide documents or information within 7 days — and failure to comply can attract penalties up to $200,000 for bodies corporate.
Statutory TextThe responsible entity must exercise its powers and discharge its duties honestly and with care and diligence.
— Corporations Act 2001 (Cth), s. 601FC(1) — Duties of responsible entity
Statutory TextA responsible entity must not make a decision that is not in the best interests of the members of the scheme.
— Corporations Act 2001 (Cth), s. 601FC(2) — Duties of responsible entity
Statutory TextThe responsible entity must give the product disclosure statement to a person before the person acquires an interest in the scheme.
— Corporations Act 2001 (Cth), s. 601GA(1) — Disclosure of information
What to Do
Review the trust deed and PDS to confirm what fees are permitted and disclosed.
Write to the responsible entity requesting detailed justification and calculation of the disputed fees.
If unsatisfied, gather support from other unitholders holding at least 5% of voting rights to call a meeting under s. 601FC(2).
Lodge a formal complaint with ASIC via asic.gov.au/complain, citing sections 601FC and 601GA.
As a last resort, apply to the Federal Court or relevant state Supreme Court for orders removing the responsible entity or restraining excessive fees.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.