13/05/2026
🚨 BIG changes announced in last night’s Federal Budget 🚨
If you have a family trust or discretionary trust, this could be one of the biggest tax shake-ups we’ve seen in years! 😭
The Government has announced a proposed 30% minimum tax on discretionary trusts from 1 July 2028 - and it could significantly impact how many families and business owners structure their affairs.
Here’s what you need to know 👇
❌ The ability to distribute trust income to lower-income family members to reduce overall family tax may be heavily reduced.
❌ “Bucket company” strategies could become far less effective, with some structures potentially facing double taxation.
❌ New discretionary testamentary trusts (commonly used in estate planning) may also be affected.
✅ Existing structures won’t change immediately - there’s still time to review your options before the proposed start date.
✅ A restructuring rollover relief period is proposed from 1 July 2027 to 30 June 2030.
For many small business owners, investors, and families, discretionary trusts have been a key part of asset protection, succession planning, and tax management for decades. These proposed changes could mean it’s time to rethink whether your current structure is still the right fit.
⚠️ At this stage, legislation is still being developed and details may change - but this is something worth paying attention to early.
If you currently operate through a family trust, have a bucket company, or use testamentary trusts in your estate planning, now is a good time to start the conversation.
📞 Need help understanding what this means for you? Reach out to us for a chat.
