16/10/2026
Trusts aren’t dead — but the way they are taxed may be about to change.
Legislation has now been introduced proposing a 30% minimum tax on certain discretionary trust income from 1 July 2028. The bill is currently before the House of Representatives, which means the measures are not yet law and may still change before commencement. The package also includes exclusions, an alternative elective regime and proposed rollover relief for eligible restructures from 1 July 2027.
While the Government estimates that more than 90% of small businesses will not be affected in any given year, business owners operating through discretionary trusts should still understand how the proposed rules could apply to their structure.
Swipe through for a practical overview of:
- what the proposed minimum tax could mean
- which trusts and income may be excluded
- the proposed commencement dates
- what business owners should begin reviewing now
The key message is simple: do not restructure because of a headline.
Your structure should be assessed across tax, asset protection, financing, succession, estate planning and the long-term value of your business. Model the financial impact first, then make an informed decision.
Using a discretionary trust? Speak with LG Accounting Solutions about reviewing your current structure and understanding how the proposed changes may affect you.
This information is general only and does not constitute personal tax, financial or legal advice. The proposed legislation may change before becoming law.