A Potential Trust Tax Loophole that Survived ‘Death Tax’ U-Turn

‘Unworkable’ trusts tax will hit housing supply, says property council

Jim Chalmers’ 30 per cent trust tax will impose crippling restructuring costs on middle-tier property developers, slowing the construction of new homes.

A potential trust tax loophole that survived ‘death tax’ U-turn

The public backlash against a budget proposal that was dubbed a “death tax” was strong and led to one of the few backdowns from the federal government. There is now an exemption in place for testamentary trusts on the incoming 30% minimum tax on discretionary trusts. But what exactly is a testamentary trust? Let’s have a look at a tax arrangement that should probably be closed. When most people create their wills, they leave their assets firstly…