07/07/2026
5 trust myths people keep getting wrong π
There's a lot of talk about trusts right now, and honestly, a lot of it is wrong. Here are five things people mix up:
β "Trusts let you dodge tax"
β
Not really. The income still gets taxed, just in the hands of whoever receives it. A trust moves income around, it doesn't make tax disappear.
β "The budget killed trusts"
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Nope. The new 30% tax is only proposed (not law) and wouldn't start before July 2028. The government also scrapped the part that worried families, all testamentary trusts (the kind set up in a will) are now safe.
β "Just give the money to whoever pays the least tax"
β
Careful. If that person never actually gets the money, the ATO can undo it. They're watching this one closely.
β "A trust protects everything I own"
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Not always. Personal guarantees and who controls the trust can still leave your assets exposed.
β "Set it up once and forget it"
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Trusts need paperwork every year before 30 June, plus ongoing costs.
Know someone who needs to read this? Send it their way. And if you're not sure where your trust stands, have a chat with us before 30 June.
π Dolman Bateman, Chartered Accountants, Roseville
General info only, not personal advice. Proposed changes are current as at June 2026 and may change.