Sep 4, 2026 – 11.08amFollowing a fierce backlash from small business, Labor has introduced an “election option” in draft legislation targeting income splitting by trusts.On budget night in May, Treasurer Jim Chalmers announced a 30 per cent tax floor on trust earnings and other changes to deter families streaming profits to lower-earning relatives or corporate “bucket companies”.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Labor’s trust tax backdown explained: Pay, lock in or face penalties
Discretionary trusts will be allowed to bypass the 30 per cent tax minimum, but only if they lock in beneficiary splits permanently.
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