The government wants trusts to pay a minimum 30% tax. What’s behind the changes?

Sarinyapinngam/Getty Images The government wants trusts to pay a minimum 30% tax. What’s behind the changes? Published: October 16, 2026 4.45am BST https://theconversation.com/the-government-wants-trusts-to-pay-a-minimum-30-tax-whats-behind-the-changes-294459 https://theconversation.com/the-government-wants-trusts-to-pay-a-minimum-30-tax-whats-behind-the-changes-294459 Link copied Share article Share article

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This week, the federal government introduced into parliament proposed changes to discretionary trusts, imposing a new minimum 30% tax rate on income from trusts.

While these trusts can have legitimate uses, particularly for small businesses, they can also be used as a tax minimisation strategy for wealthy individuals.

Treasurer Jim Chalmers told parliament more than 95% of taxpayers do not receive income from trusts, and most trust income flows to the top 10% of households. He said:

This is all about better aligning the tax treatment of income from assets and income from work.