Special tax topics 2026-27 - Discretionary trusts: Post 2026 Federal Budget

In the 2026/27 Federal Budget, the Government announced a proposal to introduce a 30% minimum tax on most distributions from discretionary trusts, effective from 1 July 2028.

This session analyses the proposal and outlines the practical implications, planning opportunities, and key decisions facing taxpayers as the commencement date approaches.

Upon successful completion of this topic, learners should be able to:

• Explain the context of the DTMT, including its timing, key exclusions, and how it operates in a simple scenario.
• Assess the impact of replacing trust distributions with alternative income streams on both the DTMT and the overall tax outcome of an arrangement.
• Analyse how the DTMT applies to distributions to corporate beneficiaries, including its interaction where the trust derives income from shareholdings and receives franked dividends.
• Evaluate the available planning options as 1 July 2028 approaches and the DTMT comes into effect.

This session forms part of the Special Tax Topics Series. These detailed sessions have been specifically designed for an online platform to ensure training is informative, immersive and engaging.

These sessions will:

• Ensure you get the critical knowledge you need while minimising your time out of the office.
• Assist you in providing proactive tax advice and identifying tax planning opportunities early.
• Help you avoid possible traps and pitfalls.
• Give you answers to the questions most relevant to you.

Our partnership with Thomson Reuters gives you the most up-to-date information, updated regularly and enhanced by our technical specialists.

Continuing Professional Development Hours

All sessions covered in our Special Tax Topics Series constitute verifiable CPD for CA ANZ and are likely to meet the Tax Practitioners Board's CPD requirements.

Related Packages

Looking for more? Our Essential Tax Updates perfectly complement these special topic sessions.