Overview
- The treasurer introduced the bill in federal parliament on Wednesday, making trustees liable for a 30 per cent minimum tax on taxable income of discretionary trusts.
- The government estimates about $4.5 billion in revenue in the first year and more than $40 billion over a decade while saying most small firms will not be caught.
- Business groups warn the change could trigger $8 billion to $13.3 billion in advice and restructuring costs for affected business trusts and could incur state stamp duties when entities are reorganised.
- The bill includes carve-outs and transition relief for fixed trusts, charities, super funds, primary producers, deceased estates and scheduled rollover help, but the Greens say those exemptions risk loopholes such as private school‑fee avoidance and have called for a Senate inquiry.
- Passage is uncertain because the Coalition vows to oppose and repeal the measure if elected, the Greens demand an inquiry into concessions, and experts warn enforcement and drafting challenges could blunt the policy’s effect.