Jun 11, 2026 – 11.59amThe budget’s plan to impose a minimum 30 per cent tax rate on distributions from discretionary trusts is just the latest salvo in a 40-year war – waged through legislation and Australian Taxation Office rulings by governments of all political stripes – on what has been the ultimate wealth flex.Whether it ultimately kills off the use of a wealth-holding structure that’s almost 1000 years old is another matter. But unless Labor caves into the growing opposition to its trust tax changes, it looks like the government is hoping it might have trust kryptonite in its hands.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Andrew HobbsWealth reporterAndrew Hobbs covers self-managed superannuation funds (SMSFs), financial planning, retirement, inheritance, tax, personal finance and, sometimes, the Perth Bears. He has been a financial journalist for 30 years, previously at Bloomberg and AAP.Fetching latest articles
The war on this 1000-year-old wealth structure is 40 years in the making
Historically used for everything from protecting knights to shielding women barred from property ownership, the discretionary trust now faces its ultimate test.
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