Legal Insights
Back Track and Carve Out – Testamentary Trusts Excluded from 30% Trust Tax
The 2026-27 Federal Budget proposed to introduce a 30% minimum tax on taxable income of discretionary trusts from 1 July 2028. The original proposal raised concerns as it was suggested to apply to discretionary testamentary trusts, potentially affecting trusts established by a will for a legitimate succession planning purpose. Following consultation, the Government has amended the proposal to exclude genuine testamentary trusts from the new minimum tax, subject to integrity requirements to ensure that they are designed for a legitimate purpose.
There’s a Hole in My Bucket…The Budget’s Minimum Tax on Discretionary Trusts and Bucket Companies
The announcement of the 30% minimum tax payable by trustees of discretionary trusts has drawn significant attention. However, for discretionary trusts with corporate beneficiaries, beware of double tax.
Victorian Land Tax and Trust Classification: Lessons from R.C. Land Management Pty Ltd v Commissioner of State Revenue
The Victorian Supreme Court’s decision in R.C. Land Management Pty Ltd v Commissioner of State Revenue [2026] VSC 49 confirms that the classification of trusts for land tax purposes must be determined by the rights and obligations contained in the trust deed of the trust, rather than by administrative reference or reclassification.
Reviewing Trustee Decisions – Claim Staking Process: Williams v Robba [2025]
The Queensland Supreme Court’s decision, Williams v Robba [2025] QSC 2023, highlighted that in self-managed superannuation funds death benefit disputes, the Court will consider and review the trustees decision making process – not whether they would have made the same decision.
Gift and Loan Arrangements – There is more you should know
When considering asset protection, gift, loan and mortgage arrangements are a key strategy, particularly in the context of protecting assets against creditor or insolvency claims as well as parents providing financial assistance to adult children. The effectiveness of the strategy relies upon ensuring that that agreement is correctly documented and implemented.