The Albanese government has not ruled out exempting future discretionary testamentary trusts from its proposed 30% minimum tax, as pressure mounts over how the new system will affect inheritances and capital gains.
The trusts created through a person’s will and activated upon their death allow assets to be distributed flexibly among beneficiaries. Under Labor’s budget plan, these trusts were initially included in the new minimum tax framework, prompting concerns from families, estate planners and legal groups.
At the same time, Labor is working to finalise carve‑outs for startups, which argue they would be disproportionately affected by the proposal to tie the capital gains tax (CGT) discount to indexation. Debate is also emerging over how the new rules will treat certain investment share losses, an issue flagged by tax specialists.
Speaking on Friday, Prime Minister Anthony Albanese signalled openness to adjustments when asked whether new testamentary trusts could be exempted.
“On trusts, there’ll be a consultation period about that, and we made that clear on budget night,” he said.
The government has indicated that further refinements are possible as consultation continues with industry, tax experts and affected sectors.
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