Australia Proposes Fixed-Distribution Opt-Out From 30% Trust Tax

Australia’s government released draft legislation allowing discretionary trusts existing on 1 July 2028 to elect to make fixed distributions to pre-nominated beneficiaries and avoid the planned 30% minimum tax. Treasury says the election would not require restructuring and is not expected to trigger state or territory stamp duty. More than 90% of Australia’s 2.7 million active small businesses would be unaffected in any given year. The draft also excludes charitable, special-disability and genuine testamentary trusts, with submissions open until 18 September.