Portfolio — 9 July 2026

The Treasurer, Dr Chalmers, released a consultation paper on 8 July proposing a 30 percent minimum tax on the taxable income of discretionary trusts, to take effect from 1 July 2028 [TA-260708-treasu-d97867b6afbe]. The measure is framed as aligning the tax treatment of trust income with the rates paid by ordinary workers, with the Treasurer positioning it as a fairness reform that will also fund ongoing income-tax cuts [TA-260708-treasu-d97867b6afbe].

The paper states that more than 90 percent of small businesses will be unaffected, and small businesses that do use discretionary trusts will be eligible for rollover relief if they restructure [TA-260708-treasu-d97867b6afbe]. A three-year expanded rollover relief period is proposed to commence from 1 July 2027, giving affected entities time to adjust ahead of the 2028 start date.

The consultation scope is deliberately narrow: fixed trusts, widely held trusts, complying superannuation funds, special disability trusts, testamentary trusts, deceased estates, and charitable trusts are all excluded, as is income from primary production, distributions to vulnerable minors, and discretionary testamentary trusts established for genuine purposes.

The paper seeks industry and practitioner feedback on a range of technical implementation questions, including the precise list of exclusions, how distributions to charities are treated, how excess franking credits are handled, and what collection mechanisms are appropriate. No parliamentary activity was recorded for the Treasurer on this date, so this Note is drawn from the comms stream alone.