Updated Jun 18, 2026 – 4.38pm, first published at 4.27pmTestamentary trusts will receive favourable tax treatment permanently after Labor caved to pressure to exempt them from a new tax floor of 30 per cent.Testamentary trusts are written into a person’s will and only come into force upon death. They are often used to distribute income to minors while offering asset protection.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
No ‘death tax’: Families win reprieve in Labor backflip on trusts
The change means that a whole class of trusts will be exempt from the proposed 30 per cent minimum tax rate in a win for the beneficiaries of inherited wealth.
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