Many families with wealth across Asia and Australia now face the question of where to locate the family office. The answer is usually less about tax than many expect. Talent, stability, privacy and where the family actually lives tend to matter most.
The factors families weigh
- Where the family lives and gives. A family office tends to follow the family. If children and grandchildren are settling in Australia, Singapore or elsewhere, and the family’s philanthropy is directed there, the office often needs a presence nearby.
- Access to talent. Experienced investment, legal and administrative staff are concentrated in a few centres. Singapore is a frequent choice because of the number of private banks and trust companies located there.
- Stability and the rule of law. Well-regarded, stable jurisdictions are generally preferable to the lowest-cost option, because the structure is intended to last for generations.
- Privacy and separation from the operating business. Some families locate the office away from where the family business operates, to keep family affairs private and to separate investment risk from operating risk.
- Regulation. Anti-money laundering and beneficial ownership standards have tightened in Singapore, Australia and elsewhere. A family office must be able to meet them.
- Data. Where the family’s records are held, and who has access to them, is increasingly a governance question in its own right.
Single-family or multi-family
A single-family office gives the family control and confidentiality, but it is expensive to establish and run and depends on retaining a small team. Staff retention depends on culture and career development, including meaningful titles and in some cases an ownership stake, as much as on pay. Some families use a combination: a small in-house team supported by a multi-family office or external advisers.
People and culture
No family office structure is formulaic; each must be designed around the family. What makes it work over decades is people. A long-term strategy needs key staff who stay for 10, 20 or 30 years and someone clearly responsible for it. Experienced professionals often value respect, esteem and a clear path of progression as much as pay, and offices with more than one location can offer mobility between them. Family businesses tend to be run from the top down; a family office benefits from communication in every direction and from owners who set direction and receive reporting without interfering in day-to-day decisions.
Where Australia fits
Many Asian families with Australian ties do not need an Australian family office as such, but do need their Australian assets and family members properly integrated into the family’s structures. That typically involves:
- Australian holding structures and trusts that interact correctly with the family’s offshore structures;
- governance documents that define who gives instructions and who approves them, with appropriate controls. See family office governance and maker-checker controls;
- consideration of Australian financial services licensing and anti-money laundering obligations where an Australian entity provides services;
- succession planning so that control of Australian entities passes as intended.
How we assist
We advise families and family office executives on the Australian legal components of their structures: wills, trusts, company and trust succession, governance documents and coordination with advisers overseas. Tax and financial services licensing questions should also be reviewed by appropriately qualified advisers, with whom we work closely. Justin Chua is a Nationally Accredited Mediator and an Affiliate member of STEP.
Frequently asked questions
What matters most when choosing a family office location?
Practitioners commonly point to where the family lives, access to experienced staff, the stability and reputation of the jurisdiction, privacy, and the regulatory environment. Tax is relevant but is rarely the only factor.
Does a family with Australian members need an Australian family office?
Not necessarily. Many families manage Australian assets through existing offshore offices, provided Australian structures, governance and succession arrangements are properly integrated and Australian legal obligations are met.
What is the difference between a single-family and a multi-family office?
A single-family office serves one family and offers greater control and confidentiality, at a higher cost. A multi-family office serves several families and shares resources. Some families combine the two.
What governance controls should a family office have?
Clear authority for who may give and approve instructions, separation of duties so no individual has full control of accounts, regular reporting to the family, and documented succession of decision-makers.
Chua Tan Associates advises families, executors, trustees and their professional advisers on estate planning, estate administration and estate disputes, in Australia and across borders. To arrange a confidential consultation, please contact our Melbourne office on +61 3 9602 3988 or submit an enquiry. Advice is available in English, Mandarin and Cantonese.
Justin Chua (蔡智勋), lawyer and mediator, Chua Tan Associates, Melbourne. General information only, not legal or tax advice. Victorian law unless stated otherwise.
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