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Wealthy use trusts to pay less tax, but does budget change go too far?

ABC Australia · May 14, 2026, 7:30 PM · Also reported by 2 other sources

Key takeaways

The changes to the taxation of trusts will impact the transfer of intergenerational wealth.
From July 1, 2028, income generated within a discretionary trust will be taxed at 30 per cent, with the tax paid out of the trust before it distributes payments to beneficiaries.
An individual beneficiary (only individuals and not corporate beneficiaries) will receive a non-refundable credit for the tax paid.

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The changes to the taxation of trusts will impact the transfer of intergenerational wealth. (ABC Kimberley: Vanessa Mills)

Link copied Share Share article. The federal budget includes a new 30 per cent minimum tax on discretionary trusts.

From July 1, 2028, income generated within a discretionary trust will be taxed at 30 per cent, with the tax paid out of the trust before it distributes payments to beneficiaries.

Article preview — originally published by ABC Australia. Full story at the source.

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Wealthy use trusts to pay less tax, but does budget change go too far?

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