The intent of the initiative to impose a minimum 30% tax on discretionary trusts is to eventually bring all discretionary trusts (termed "minimum tax trusts") within the tax net. We cover the fundamental issues at this point in time.

The Government’s proposed 30% minimum tax on discretionary trusts could have significant implications for some family groups, particularly where trusts distribute income to companies, although the rules remain subject to consultation and aren’t final yet.

If your company or trust earns income mainly from your personal efforts, review your arrangements against the ATO’s updated guidance to avoid costly issues.

Stay up to date with the latest 2026-27 Federal Budget tax changes, including updates to capital gains tax, testamentary trusts, SMSF borrowing rules and other key measures affecting individuals and businesses.

Revisit the 2026–27 Federal Budget tax reforms to better understand their impact on property investors, business owners and families.