Tax changes to discretionary trusts are likely – what is happening and why are some Australians upset?

Key points

• The Albanese government has introduced legislation in parliament that would place a minimum 30 per cent tax on income received from discretionary trusts. Treasury estimates the measure will raise $4.5 billion in 2029-30, its first year of operation.
• Discretionary trusts let income from assets such as businesses, property or shares be split among beneficiaries, often family members, usually on lower tax rates.
• Affected people and small businesses argue restructuring will be costly, and the Australian Chamber of Commerce and Industry opposes the reforms.