{"id":4317,"date":"2026-09-11T09:48:33","date_gmt":"2026-09-10T23:48:33","guid":{"rendered":"https:\/\/wiselinkaccountants.com.au\/discretionary-trust-minimum-tax-election-2028\/"},"modified":"2026-09-11T09:48:33","modified_gmt":"2026-09-10T23:48:33","slug":"discretionary-trust-minimum-tax-election-2028","status":"publish","type":"post","link":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/discretionary-trust-minimum-tax-election-2028\/","title":{"rendered":"Trust Minimum Tax 2028: The Election Instead of Restructuring"},"content":{"rendered":"<p><script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"BlogPosting\", \"headline\": \"Trust Minimum Tax 2028: The Election Instead of Restructuring\", \"description\": \"Treasury's 3 September 2026 exposure draft for the 30 per cent minimum tax on discretionary trusts adds an election: trusts in existence at 1 July 2028 can make fixed distributions to pre-nominated beneficiaries instead of restructuring, with no stamp duty expected. Nominated beneficiaries can only change on death or family breakdown, and a distribution inconsistent with the election revokes it automatically, taxing the trustee at the top marginal rate plus Medicare levy for that year. Roll-over relief runs three years from 1 July 2027. Submissions close 18 September 2026.\", \"image\": \"https:\/\/wiselinkaccountants.com.au\/wp-content\/uploads\/2026\/09\/treasury-building-canberra-hero-2026-09-11.jpeg\", \"datePublished\": \"2026-09-11T09:00:00+10:00\", \"dateModified\": \"2026-09-11T09:00:00+10:00\", \"inLanguage\": \"en-AU\", \"mainEntityOfPage\": {\"@type\": \"WebPage\", \"@id\": \"https:\/\/wiselinkaccountants.com.au\/discretionary-trust-minimum-tax-election-2028\/\"}, \"author\": {\"@type\": \"Person\", \"name\": \"Lily Zhang\", \"jobTitle\": \"Founder & Principal Accountant\", \"hasCredential\": [\"CPA Australia member\", \"Registered Tax Agent\", \"ASIC Registered Agent\", \"NTAA Member\"], \"worksFor\": {\"@type\": \"AccountingService\", \"name\": \"Wiselink Accountants\"}, \"knowsLanguage\": [\"en\", \"zh\"]}, \"publisher\": {\"@type\": \"Organization\", \"name\": \"Wiselink Accountants\", \"logo\": {\"@type\": \"ImageObject\", \"url\": \"https:\/\/wiselinkaccountants.com.au\/wp-content\/uploads\/2020\/02\/logo.png\"}}, \"about\": \"The Australian 30 per cent minimum tax on discretionary trusts applying from 1 July 2028: the electable regime allowing fixed distributions to pre-nominated beneficiaries as an alternative to restructuring, the conditions for changing nominated beneficiaries, automatic revocation and its consequences, roll-over relief available for three years from 1 July 2027, the new definition of fixed trust, refunds for excess franking credits, excluded trusts and income including primary production and testamentary trusts, and the Treasury consultation closing 18 September 2026\"}<\/script><\/p>\n<p><!--\n\u9009\u9898\u4f9d\u636e: demand-supply-map s15\uff08\u6210\u957f\u9636\u68af\uff1a\u4e2a\u4f53\u6237\u2192\u516c\u53f8\u2192Trust\u2192\u96c6\u56e2\uff09\u552f\u4e00\u8fd8\u7a7a\u7684\u90a3\u4e00\u7ea7\u3002\n         \u4eba\u7fa4 = \u5df2\u7ecf\u6709\u5168\u6743\u4fe1\u6258\u7684\u5bb6\u65cf\u4f01\u4e1a\u4e3b\uff0c\u6b63\u5728\u88ab\u95ee\u300c2028 \u5e74\u90a3\u4e2a 30% \u5230\u5e95\u8981\u4e0d\u8981\u91cd\u7ec4\u300d\u3002\n\u65f6\u70b9: 2026-09-11\u3002Treasury 2026-09-03 \u53d1\u51fa\u8349\u6848\u5168\u5957\u6750\u6599\uff0c**\u610f\u89c1\u671f 2026-09-18 \u622a\u6b62**\uff0c\u8ddd\u53d1\u5e03\u65e5 7 \u5929\u3002\n\u67e5\u91cd: \u8de8\u4e24\u6587\u4ef6\u5939 + \u7ad9\u4e0a 178 \u7bc7\u5168\u6587\u5b9e\u626b\uff08WP REST \u62c9\u6b63\u6587\uff09\u3002\n      \u300cminimum tax\u300d\u547d\u4e2d 3 \u7bc7\uff1a4143\uff0805-13 Budget \u6982\u8ff0\uff0c\u516c\u544a\u5c42\uff09\u30014183\uff0806-05 \u4e2d\u578b\u5bb6\u65cf\u4f01\u4e1a\u7a97\u53e3\uff0c\n      \u8bb2\u7684\u662f\u4e09\u9879\u6539\u9769\u53e0\u52a0\u4e0e 2027-30 \u91cd\u7ec4\u7a97\u53e3\uff09\u30014314\uff0809-09 \u4e2d\u6587 UPE\/Bendel\uff0c\u53ea\u5728\u7acb\u6cd5\u98ce\u9669\u4e00\u53e5\u91cc\u5e26\u8fc7\uff09\u3002\n      **\u300celectable\u300d\u300cpre-nominated\u300d\u300c30 per cent minimum\u300d\u7ad9\u4e0a\u4e0e\u4e24\u6587\u4ef6\u5939\u5168\u90e8 0 \u547d\u4e2d** \u2014\u2014\n      \u9009\u62e9\u5236\u662f 09-03 \u8349\u6848\u65b0\u589e\u7684\uff0c\u7ad9\u4e0a\u6ca1\u6709\u4efb\u4f55\u8986\u76d6\u3002\u672c\u6587\u53ea\u5199\u8fd9\u4e00\u5c42\uff0c\u4e0d\u590d\u8ff0 30%\/2028\/\u6392\u9664\u6e05\u5355\u7684\u516c\u544a\u5185\u5bb9\uff0c\n      \u4e09\u7bc7\u5404\u5185\u94fe\u4e00\u6b21\u3002\n\u6570\u5b57\u53e3\u5f84: \u5168\u90e8 2026-09-11 \u4e00\u624b\u62a0\u81ea Treasury\uff0c\u9010\u6761\u8bb0\u6587\u4ef6\u4e0e\u65e5\u671f\u3002\n         30% \u4e0e 2028-07-01\uff08Treasury \u54a8\u8be2\u9875\uff09\u3001\u9009\u62e9\u5236\u673a\u5236\u4e0e\u81ea\u52a8\u64a4\u9500\u540e\u679c\uff08\u8349\u6848 explainer fact sheet\uff09\u3001\n         350,000 \/ 140,000 \/ 2.7m \/ >95% \/ >90% \/ <5%\uff08\u540c fact sheet\uff09\u3001\n         roll-over \u4e09\u5e74\u81ea 2027-07-01\uff08fact sheet + \u90e8\u957f\u65b0\u95fb\u7a3f\uff09\u3001\n         50% active asset \u95e8\u69db $2m\u2192$10m \u81ea 2027-07-01\uff08Treasury \u5c0f\u4f01\u4e1a explainer\uff0c2026-06-18\uff09\u3002\n\u5dee\u5f02\u5316\u56db\u70b9: \u2460 \u9009\u62e9\u5236\u672c\u8eab SERP \u4e0a\u51e0\u4e4e\u6ca1\u4eba\u5199\uff08\u8349\u6848 9\/3 \u624d\u51fa\uff0c\u4e14\u57cb\u5728 fact sheet \u4e0d\u5728\u65b0\u95fb\u7a3f\uff09\uff1b\n           \u2461 **\u8ba9\u9009\u62e9\u5931\u6548\u7684\u90a3\u4e2a\u6761\u4ef6**\uff1a\u5206\u914d\u4e0e\u9009\u62e9\u4e0d\u4e00\u81f4 \u2192 \u81ea\u52a8\u64a4\u9500 \u2192 \u5f53\u5e74\u6700\u9ad8\u8fb9\u9645\u7a0e\u7387 + Medicare\uff0c\n              \u6b21\u5e74\u8d77\u7167\u6536\u6700\u4f4e\u7a0e\u3002\u8fd9\u6761\u662f\u5168\u7bc7\u6700\u6709\u7528\u7684\u4e00\u53e5\uff0c\u5b98\u65b9\u53ea\u5199\u4e86\u4e24\u884c\uff1b\n           \u2462 \u53d7\u5f71\u54cd\u9762\u7684\u8bda\u5b9e\u6362\u7b97\uff1a\u5b98\u65b9\u53e3\u5f84\u662f\u300c2.7m \u91cc 90% \u4e0d\u53d7\u5f71\u54cd\u300d\uff0c\u4f46\u6309 fact sheet \u81ea\u5df1\u7684\u6570\n              \uff08\u7528\u4fe1\u6258\u7684\u7ea6 350,000 \u5bb6\u3001\u5176\u4e2d\u7ea6 140,000 \u5bb6\u9884\u8ba1\u4e0d\u53d7\u5f71\u54cd\uff09\uff0c\u771f\u6b63\u8981\u505a\u51b3\u5b9a\u7684\u7ea6 210,000 \u5bb6\u3002\n              **\u8fd9\u662f\u62ff\u5b98\u65b9\u6570\u5b57\u505a\u7684\u7b97\u672f\uff0c\u6b63\u6587\u5df2\u6807\u660e\u662f\u7b97\u672f\u4e0d\u662f\u5b98\u65b9\u53e3\u5f84**\uff1b\n           \u2463 \u65b0\u7684 fixed trust \u5b9a\u4e49\u300capplies more broadly for tax purposes\u300d\uff0c\u4e0d\u6b62\u7ba1\u8fd9\u4e00\u9879\u63aa\u65bd\u3002\n\u6267\u4e1a\u8fb9\u754c: \u4e0d\u7ed9\u4e2a\u6848\u8be5\u9009\u54ea\u6761\u8def\u7684\u5224\u65ad\uff1b\u4e0d\u5199\u7b79\u5212\u65b9\u6848\uff1b\u8349\u6848\u662f\u8349\u6848\uff0c\u6b63\u6587\u660e\u786e\u5199\u300c\u672a\u6210\u6cd5\u300d\u3002\n--><\/p>\n<p>Treasury put the draft legislation for the 30 per cent minimum tax on discretionary trusts out on 3 September 2026. Submissions close on 18 September 2026.<\/p>\n<p>The rate and the start date have been public since the Budget. What is new in this package is a third option that was not on the table before, and it is the reason this draft matters to anyone who has spent the past year assuming the choice was pay the tax or restructure the group. You can now elect to keep the trust and avoid the minimum tax, without restructuring and without the stamp duty exposure a restructure usually brings. There is one condition attached that cancels it, and that condition is where most of the practical risk sits.<\/p>\n<figure>\n  <img decoding=\"async\" src=\"https:\/\/wiselinkaccountants.com.au\/wp-content\/uploads\/2026\/09\/treasury-building-canberra-hero-2026-09-11.jpeg\" alt=\"The Treasury Building in Canberra, where the exposure draft for the 30 per cent minimum tax on discretionary trusts was released on 3 September 2026\" \/><figcaption>The Treasury Building, Canberra. Photo by -wuppertaler, <a href=\"https:\/\/commons.wikimedia.org\/wiki\/File:AUS_Canberra,_Central,_Treasury_Building_001.jpg\" rel=\"nofollow\">Wikimedia Commons<\/a>, <a href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\" rel=\"nofollow\">CC BY 4.0<\/a>.<\/figcaption><\/figure>\n<h2>What the election actually does<\/h2>\n<p>A discretionary trust that is in existence at 1 July 2028 will be able to elect into a new regime. In exchange, the trustee agrees to make fixed distributions to beneficiaries nominated in advance, and the minimum tax does not apply as a result.<\/p>\n<p>Three features of it are worth reading closely.<\/p>\n<ul>\n<li>Trustees can nominate individuals and entities that are capable of benefiting under the trust at 1 July 2028, including eligible companies and trusts. There is no limit on how many beneficiaries can be nominated.<\/li>\n<li>Treasury&#8217;s own example is a trust nominating an eligible company, so that future income is taxed only as income of that company.<\/li>\n<li>The election does not require a restructure, and Treasury states it is not expected to result in state and territory stamp duties.<\/li>\n<\/ul>\n<p>For a family group whose distribution pattern has been stable for years, that is a materially cheaper answer than winding a trust up and moving assets into a company.<\/p>\n<h2>The condition that cancels it<\/h2>\n<p>The election stays in place until the trustee revokes it, or until it is revoked automatically. It is revoked automatically where the trustee makes distributions that are inconsistent with the election.<\/p>\n<p>The consequence of revocation is set out in one sentence in Treasury&#8217;s explainer, and it is the sentence to take to the next family meeting. On revocation, the trustee is subject to the highest marginal tax rate plus the Medicare levy in that income year, and the minimum tax applies to subsequent income years.<\/p>\n<p>Read that against the second limb. Nominated beneficiaries can only be added or changed later where a nominated beneficiary passes away, or where there is a family breakdown. Those are the two exits. A child finishing university and starting work is not one. A beneficiary moving overseas is not one. A new business partner is not one.<\/p>\n<p>So the election is not a formality that sits in a file. It converts a discretionary trust into something that behaves like a fixed trust for as long as it runs, and the price of drifting back to old habits for a single year is the top marginal rate plus Medicare levy on the trust&#8217;s income for that year, followed by the minimum tax from then on.<\/p>\n<p>That reframes the decision. The question is not whether the election is cheaper than restructuring, because on the face of it, it usually will be. The question is whether the group can commit to a distribution pattern it cannot vary for anything short of a death or a family breakdown.<\/p>\n<h2>Three doors, and the dates on each<\/h2>\n<table>\n<thead>\n<tr>\n<th>Option<\/th>\n<th>What happens<\/th>\n<th>Timing<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Do nothing<\/td>\n<td>The 30 per cent minimum tax applies to the trust<\/td>\n<td>From 1 July 2028<\/td>\n<\/tr>\n<tr>\n<td>Elect<\/td>\n<td>Fixed distributions to pre-nominated beneficiaries, minimum tax does not apply, no restructure, stamp duty not expected<\/td>\n<td>Available to trusts in existence at 1 July 2028<\/td>\n<\/tr>\n<tr>\n<td>Restructure out<\/td>\n<td>Roll-over relief from income tax consequences including capital gains tax, moving into a company or a fixed trust<\/td>\n<td>Three years from 1 July 2027<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The sequencing is the part people miss. Roll-over relief opens a full year before the tax starts. A group that decides in the 2027-28 year has the relief available and the tax not yet running. A group that waits until the tax bites in 2028-29 still has relief until 30 June 2030, but it is now paying while it reorganises.<\/p>\n<p>Treasury also says the roll-over is designed for a full restructuring out of a discretionary trust, with a targeted exception for primary production assets, because primary production income is excluded from the minimum tax in any case. Partial moves are not what it was built for.<\/p>\n<h2>How many groups this is actually about<\/h2>\n<p>The public framing is that more than 95 per cent of individual taxfilers and more than 90 per cent of Australia&#8217;s 2.7 million active small businesses will not be affected in any given year. Both figures are Treasury&#8217;s.<\/p>\n<p>The more useful number is in the same document. Around 350,000 active small businesses, fewer than 15 per cent of all active small businesses, operated through a discretionary trust structure in 2022-23. Of those, around 40 per cent, or 140,000, are not expected to pay additional tax or need to restructure in any given year.<\/p>\n<p>Subtract one from the other and roughly 210,000 businesses are left holding a live decision. That subtraction is ours, not Treasury&#8217;s, and it is arithmetic on Treasury&#8217;s own two figures rather than a separate estimate. It is a different picture from 90 per cent unaffected, and it is the picture that matters if you are one of the businesses that uses a trust.<\/p>\n<h2>The quieter change in the same package<\/h2>\n<p>Fixed trusts and widely held trusts are outside the minimum tax. To make that work, the draft introduces a new definition of fixed trust, and Treasury says it applies more broadly for tax purposes. A trust can be treated as a fixed trust where there are no material discretionary elements. The stated purpose is to keep bare trusts, managed investment trusts and other widely held trusts out of scope.<\/p>\n<p>A definition of fixed trust that applies more broadly than one measure is worth watching, because the existing concept carries weight in areas that have nothing to do with this tax. If you hold property through a bare trust arrangement, or you have ever had a franking credit or trust loss question turn on whether a trust was fixed, this is the part of the package to read rather than the headline.<\/p>\n<h2>Franking credits and charitable distributions<\/h2>\n<p>Two smaller points that answer questions we have already been asked.<\/p>\n<p>On franking credits, once the trustee has offset its income tax liabilities, it will be able to obtain refunds for franking credits that remain and relate to income subject to the minimum tax. The treatment of company distributions flowing through trusts that do not relate to minimum-taxed income is unaffected.<\/p>\n<p>On charitable giving, charitable trusts and all distributions from trusts to registered charities and deductible gift recipients are excluded. Distributions to other income tax-exempt entities such as sporting clubs are also excluded, up to a cap that has not been settled yet. Treasury estimates distributions from discretionary trusts to charities and deductible gift recipients accounted for less than 5 per cent of total charitable donations and bequests in 2024.<\/p>\n<h2>What is excluded<\/h2>\n<p>The exclusions carried through from the Budget announcement into this draft are charitable trusts, special disability trusts, complying superannuation entities, primary production income, certain income relating to vulnerable minors, deceased estates, and all discretionary testamentary trusts established for genuine testamentary purposes.<\/p>\n<p>Testamentary trusts are the one worth flagging to families with estate planning in progress. The exclusion is written against trusts established for genuine testamentary purposes, which is a test, not a label.<\/p>\n<h2>What we are doing for clients between now and 1 July 2028<\/h2>\n<p>This is a draft. It is not law, and further tranches covering administrative and integrity arrangements are still to come. That is a reason to model, not a reason to wait, because the two dates that govern the decision are already fixed and the earlier one is 1 July 2027.<\/p>\n<ol>\n<li>List every trust in the group and mark which ones are inside the measure and which are already excluded. Primary production income and testamentary trusts take some groups out of the conversation entirely.<\/li>\n<li>For the trusts inside it, write down the last five years of distributions. That history is the honest test of whether the election is viable, because it shows how often the pattern actually changed.<\/li>\n<li>Check the deed. A deed drafted fifteen years ago may not accommodate a binding nomination of beneficiaries, and the deed has to work before the election is worth modelling.<\/li>\n<li>Model the election against restructuring on the same facts, including the stamp duty the restructure would trigger and the election is not expected to.<\/li>\n<li>If restructuring is the answer, plan it into the 2027-28 year rather than the 2028-29 year, so the relief is running and the tax is not.<\/li>\n<\/ol>\n<p>If your group also has unpaid present entitlements owing to a corporate beneficiary, that is a separate question with its own timetable, and Treasury has confirmed the 2018 Budget measure on unpaid present entitlements will be progressed separately. We covered where that stands after the High Court decision in June <a href=\"https:\/\/wiselinkaccountants.com.au\/upe-trust-company-beneficiary-bendel-division-7a-chinese\/\">here<\/a>, in Chinese. The wider set of reforms landing between 2027 and 2028, and how they stack for mid-market family groups, is <a href=\"https:\/\/wiselinkaccountants.com.au\/mid-market-family-business-restructure-2026-australia\/\">here<\/a>, and the original Budget summary is <a href=\"https:\/\/wiselinkaccountants.com.au\/federal-budget-2026-summary-tax-changes-smes-investors\/\">here<\/a>.<\/p>\n<p>Submissions on the exposure draft close on 18 September 2026 and can be made through the Treasury consultation hub. Treasury has also published an address for questions about the materials.<\/p>\n<h2>Sources<\/h2>\n<ul>\n<li>Treasury, <em>Minimum tax on discretionary trusts, exposure draft legislation<\/em>, consultation opened 3 September 2026, submissions close 18 September 2026.<\/li>\n<li>Treasury, <em>Minimum tax on discretionary trusts, exposure draft legislation explainer<\/em>, published with the 3 September 2026 consultation.<\/li>\n<li>The Hon Dr Jim Chalmers MP, Treasurer, <em>Exposure draft legislation, Minimum tax on discretionary trusts<\/em>, media release, 3 September 2026.<\/li>\n<li>Treasury, <em>Capital Gains Tax and Discretionary Trusts Reform, Small business explainer<\/em>, 18 June 2026.<\/li>\n<\/ul>\n<p>All figures retrieved 11 September 2026. The figure of roughly 210,000 businesses is our subtraction of two Treasury figures and is labelled as such in the text. The exposure draft is not law and its terms may change before it is enacted. This article is general information and does not take your circumstances into account.<\/p>\n<p>Wiselink Accountants works with family businesses and their owners in Melbourne and Brisbane, in English and Chinese. Lily Zhang is a CPA and registered tax agent, and the firm has been advising Australian small businesses since 2013.<\/p>\n<p><script type=\"application\/ld+json\">{\"@context\": \"https:\/\/schema.org\", \"@type\": \"FAQPage\", \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"When does the 30 per cent minimum tax on discretionary trusts start?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"A 30 per cent minimum tax on certain discretionary trusts will apply from 1 July 2028. It was announced in the 2026-27 Budget, and Treasury released draft legislation for the core components on 3 September 2026. Submissions on the exposure draft materials close on 18 September 2026. The measure is not yet law, and Treasury has said further tranches covering administrative and integrity arrangements will follow. Source: Treasury, Minimum tax on discretionary trusts exposure draft legislation consultation, retrieved 11 September 2026.\"}}, {\"@type\": \"Question\", \"name\": \"Can I avoid the minimum tax without restructuring my trust?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"The draft introduces an election. A discretionary trust in existence at 1 July 2028 can elect into a new regime under which it makes fixed distributions to pre-nominated beneficiaries, and the minimum tax does not apply as a result. Trustees can nominate individuals and entities capable of benefiting under the trust at 1 July 2028, including eligible companies and trusts, with no limit on the number nominated. Treasury states the election would not require a restructure and is not expected to result in state and territory stamp duties. Source: Treasury, Minimum tax on discretionary trusts exposure draft legislation explainer, retrieved 11 September 2026.\"}}, {\"@type\": \"Question\", \"name\": \"What happens if the trustee makes a distribution that does not match the election?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"The election is automatically revoked. Treasury's explainer states that upon revocation the trustee will be subject to the highest marginal tax rate plus the Medicare levy in that income year, with the minimum tax applying to subsequent income years. The election otherwise stays in place until the trustee revokes it. This is the main practical risk in choosing the election over a restructure, because it means one inconsistent year carries the top rate rather than the 30 per cent minimum. Source: Treasury, Minimum tax on discretionary trusts exposure draft legislation explainer, retrieved 11 September 2026.\"}}, {\"@type\": \"Question\", \"name\": \"Can the nominated beneficiaries be changed later?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Only in two situations. Treasury states that nominated beneficiaries can only be added or changed later where a nominated beneficiary passes away or there is a family breakdown. Ordinary changes in family circumstances, such as an adult child starting work or a beneficiary moving overseas, are not listed as grounds for changing the nomination. Groups considering the election should test it against their actual distribution history rather than their current intentions. Source: Treasury, Minimum tax on discretionary trusts exposure draft legislation explainer, retrieved 11 September 2026.\"}}, {\"@type\": \"Question\", \"name\": \"When is roll-over relief available if I decide to restructure instead?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Roll-over relief will be available for three years from 1 July 2027 for taxpayers who wish to restructure out of a discretionary trust into other arrangements such as a company or a fixed trust. It provides relief from income tax consequences including capital gains tax. Treasury states the relief is designed for a full restructuring out of a discretionary trust, with a targeted exception for primary production assets, since primary production income is excluded from the minimum tax. The relief opens a full year before the tax starts on 1 July 2028. Source: Treasury, Minimum tax on discretionary trusts exposure draft legislation explainer, retrieved 11 September 2026.\"}}, {\"@type\": \"Question\", \"name\": \"Which trusts and which income are excluded?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"The exclusions are charitable trusts, special disability trusts, complying superannuation entities, primary production income, certain income relating to vulnerable minors, deceased estates, and all discretionary testamentary trusts established for genuine testamentary purposes. All distributions from trusts to registered charities and deductible gift recipients are excluded, as are distributions to other income tax-exempt entities such as sporting clubs up to a cap still to be finalised. Fixed trusts and widely held trusts are outside the measure, and the draft introduces a new definition of fixed trust that Treasury says applies more broadly for tax purposes, covering trusts with no material discretionary elements including bare trusts and managed investment trusts. Source: Treasury, Minimum tax on discretionary trusts exposure draft legislation explainer, retrieved 11 September 2026.\"}}, {\"@type\": \"Question\", \"name\": \"How many businesses does this actually affect?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Treasury states that more than 95 per cent of individual taxfilers and more than 90 per cent of Australia's 2.7 million active small businesses will not be affected in any given year. The same explainer says around 350,000 active small businesses, fewer than 15 per cent of all active small businesses, operated through a discretionary trust in 2022-23, and that around 40 per cent of those, or 140,000, are not expected to pay additional tax or need to restructure in any given year. Subtracting one figure from the other leaves roughly 210,000 businesses facing a decision. That subtraction is ours rather than a Treasury estimate. Source: Treasury, Minimum tax on discretionary trusts exposure draft legislation explainer, retrieved 11 September 2026.\"}}]}<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Treasury released the draft legislation for the 30 per cent minimum tax on discretionary trusts on 3 September 2026, and submissions close on 18 September. The rate and the 1 July 2028 start date were already known. What is new is a third option: a trust in existence at 1 July 2028 can elect to make fixed distributions to pre-nominated beneficiaries and avoid the minimum tax, with no restructure and no stamp duty expected. One condition cancels it, and revocation costs a year at the top marginal rate plus Medicare levy.<\/p>\n","protected":false},"author":5,"featured_media":4316,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,17,61,18],"tags":[],"class_list":["post-4317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-topics","category-business-solutions","category-english-post","category-business"],"_links":{"self":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts\/4317","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/comments?post=4317"}],"version-history":[{"count":0,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts\/4317\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/media\/4316"}],"wp:attachment":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/media?parent=4317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/categories?post=4317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/tags?post=4317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}