The government is introducing changes to the taxation of discretionary trusts.
A 30 per cent minimum tax on certain discretionary trusts will apply from 1 July 2028. There will be support for those that wish to restructure. These changes aim to make the tax system fairer and more sustainable.
Feedback
Give feedback on the draft legislation to implement these changes, including on:
how the minimum tax will work
excluded types of trusts and income
the definition of fixed trust
how income tax-exempt entities will be treated
roll-over relief
a new electable regime for exclusion from the minimum tax
treatment of excess franking credits.
Background
The government announced this minimum tax in the 2026–27 Budget.
It will apply to certain discretionary trusts from 1 July 2028. The tax will not apply to other types of trusts and some types of income.
Those who choose to restructure to other types of entities can access expanded roll-over relief for 3 years from 1 July 2027.
For more background, read the July consultation paper.
