Ep 425: Family trust investing: Are trusts still worth it under proposed tax changes?

Read the blog online here. Two tax changes could materially alter how Australians own investments and use family trusts. The first is Division 119, which has already been legislated and will impose a minimum 30% tax on capital gains made after 1 July 2027. The second is a proposed minimum 30% tax on distributions from discretionary family trusts, including both income and capital gains, from 1 July 2028. The interaction between these measures creates a serious problem. Under the draft l...