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Australia: Draft legislation introducing minimum tax on discretionary trusts

The bill provides clarification and flexibility compared with the exposure draft, including refinements to the fixed trust definition.

October 19, 2026

The Treasury Laws Amendment (Tax Reform No. 3) Bill 2026, which was introduced to Parliament on October 14, 2026, would introduce a minimum tax on discretionary trusts (as well as the accompanying rollover relief and electable regime rules), applicable to income years beginning on or after July 1, 2028 (while the three-year restructuring roll-over will be available for transfers occurring in the period from July 1, 2027, to June 30, 2030).

The bill provides some helpful clarification and greater flexibility compared with the exposure draft, including refinements to the fixed trust definition.

The bill has been referred to the Senate Economics Legislation Committee for inquiry and report by November 13, 2026.

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