Australia: Consultation on implementation of minimum tax on discretionary trusts
Consultation closes on July 31, 2026.
The government opened a consultation on implementation of the 30% minimum tax on discretionary trusts, which was announced in the 2026-2027 budget.
The consultation paper seeks feedback on implementation details, including:
- Implementation of the core arrangements for discretionary trusts, including exclusions
- Treatment of distributions to income‑tax exempt entities like charities
- Implementation of expanded rollover relief for three years from July 1, 2027, to support small businesses and others that wish to restructure out of discretionary trusts
- Treatment of excess franking credits
- Appropriate collection mechanisms
The minimum tax is not intended to affect or limit the use of trusts for legitimate reasons. Small businesses operating through discretionary trust structures will be eligible for rollover relief if they want to restructure, and over 90% of small businesses will not be affected by the change.
The consultation closes on July 31, 2026.