{"id":17777,"date":"2026-06-26T17:00:28","date_gmt":"2026-06-26T11:30:28","guid":{"rendered":"https:\/\/befreeltd.com\/au\/?p=17777"},"modified":"2026-07-01T11:55:09","modified_gmt":"2026-07-01T06:25:09","slug":"family-trust-tax-effective-after-budget","status":"publish","type":"post","link":"https:\/\/befreeltd.com\/au\/resources\/blogs\/family-trust-tax-effective-after-budget\/","title":{"rendered":"Is Your Family Trust Still Tax-Effective After the 2026 Budget?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"17777\" class=\"elementor elementor-17777\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-684f1151 e-flex e-con-boxed e-con e-parent\" data-id=\"684f1151\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7f80aa8c elementor-widget elementor-widget-text-editor\" data-id=\"7f80aa8c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>For Australian business owners and investors, the family trust has long been a cornerstone of tax and wealth planning. Its flexibility, asset protection benefits, and income-splitting efficiency made discretionary trusts the structure of choice for generations of family businesses.<\/p><p><a href=\"https:\/\/budget.gov.au\/\" target=\"_blank\" rel=\"nofollow noopener\">The 2026 Federal Budget<\/a>\u00a0introduces a 30% minimum tax on trust-distributed income from 1 July 2028, a change that materially reduces the primary tax advantage most trustees have relied upon, and prompts a necessary reassessment of whether the current structure remains optimal.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6b65fd91 elementor-widget elementor-widget-heading\" data-id=\"6b65fd91\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Family Trusts Have Worked \u2014 and Why They Were So Popular<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-79be99ff elementor-widget elementor-widget-text-editor\" data-id=\"79be99ff\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Family discretionary trusts have long been a popular structure for managing business and investment income in Australia. Their appeal has traditionally come from flexible income distribution, asset protection, and tax efficiency compared with individual ownership structures.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fa6e792 elementor-widget elementor-widget-heading\" data-id=\"fa6e792\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">The Core Tax Advantage<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9554596 elementor-widget elementor-widget-text-editor\" data-id=\"9554596\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"https:\/\/www.ato.gov.au\/about-ato\/new-legislation\/in-detail\/businesses\/tax-reform-introducing-a-minimum-tax-on-discretionary-trusts\" target=\"_blank\" rel=\"nofollow noopener\">A discretionary trust<\/a>\u00a0allows the trustee to distribute income between beneficiaries each year based on their marginal tax rates. In practice, this enabled families to reduce their overall tax by directing income to lower-income beneficiaries, such as a spouse or adult children.<\/p><p>For example, income distributed to a beneficiary in a lower tax bracket could result in significantly less tax than if the same income were earned by someone on the top marginal rate.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-67f073e elementor-widget elementor-widget-heading\" data-id=\"67f073e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Other Advantages of the Trust Structure<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-153d011 elementor-widget elementor-widget-text-editor\" data-id=\"153d011\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Beyond tax planning, discretionary trusts have also remained popular for:<\/p>\n<ul>\n<li>Asset protection against personal insolvency and legal claims<\/li>\n<li>Estate and succession planning flexibility<\/li>\n<li>Access to CGT concessions for eligible long-term assets<\/li>\n<li>Continuity of ownership across generations for family businesses<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dd13f5d elementor-widget elementor-widget-heading\" data-id=\"dd13f5d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What the 2026 Budget Changed \u2014 and When<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f7e62ed elementor-widget elementor-widget-text-editor\" data-id=\"f7e62ed\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The 2026\u201327 Federal Budget introduces major changes to how discretionary trust distributions are taxed from 1 July 2028. Under the new rules, income distributed through a family trust will generally be subject to a minimum effective tax rate of 30%, regardless of the beneficiary\u2019s personal tax bracket. Further details are outlined in the <a href=\"https:\/\/budget.gov.au\/\" target=\"_blank\" rel=\"nofollow noopener\">2026\u201327 Budget Tax Measures<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ae3446c elementor-widget elementor-widget-heading\" data-id=\"ae3446c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">The 30% Minimum Distribution Tax<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f348697 elementor-widget elementor-widget-text-editor\" data-id=\"f348697\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>From 1 July 2028, beneficiaries receiving trust distributions below the 30% tax threshold will no longer benefit from lower marginal tax rates. For example, a beneficiary who would normally pay\u00a0<a href=\"https:\/\/www.ato.gov.au\/tax-rates-and-codes\/tax-rates-australian-residents\" target=\"_blank\" rel=\"nofollow noopener\">16% tax<\/a>\u00a0on additional income will instead be taxed at the new 30% minimum rate on trust distributions.<\/p><p>Beneficiaries already paying tax at 30% or above are generally unaffected by the change.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a966b24 elementor-widget elementor-widget-heading\" data-id=\"a966b24\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">The CGT Interaction<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b48d154 elementor-widget elementor-widget-text-editor\" data-id=\"b48d154\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The reforms also affect capital gains distributed through trusts. Where a trust sells a CGT asset and distributes the gain to beneficiaries, the 30% minimum tax may apply alongside the broader CGT changes commencing from 1 July 2028.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0493c91 elementor-widget elementor-widget-heading\" data-id=\"0493c91\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What Has Not Changed<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-771e414 elementor-widget elementor-widget-text-editor\" data-id=\"771e414\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The reforms change the taxation of trust distributions rather than the legal structure itself. Discretionary trusts will continue to provide:<\/p>\n<ul>\n<li>Asset protection benefits against personal insolvency and certain legal claims<\/li>\n<li>Estate and succession planning flexibility for transferring wealth and business interests across generations<\/li>\n<li>Access to the 2027\u20132030 rollover relief period for eligible restructures into alternative entities such as companies or unit trusts<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0030ede elementor-widget elementor-widget-heading\" data-id=\"0030ede\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Who is Most Affected \u2014 and Who is Not<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5ea4305 elementor-widget elementor-widget-text-editor\" data-id=\"5ea4305\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The impact of the 30% minimum tax depends largely on how trust income is currently distributed.<\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><strong>Your Current Strategy<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Tax Impact From 1 July 2028<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Impact Level<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Distributing income to a spouse or adult child on a low income<\/p>\n<\/td>\n<td>\n<p>30% minimum tax applies to distributions previously taxed at lower marginal rates<\/p>\n<\/td>\n<td>\n<p>High Impact<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Distributing to beneficiaries with little or no other income<\/p>\n<\/td>\n<td>\n<p>Previously low or tax-free distributions become subject to 30% tax<\/p>\n<\/td>\n<td>\n<p>Very High Impact<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Distributing to a corporate beneficiary<\/p>\n<\/td>\n<td>\n<p>Tax treatment broadly aligns with existing company tax rates<\/p>\n<\/td>\n<td>\n<p>High Impact<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Distributing to beneficiaries already earning above the 30% threshold<\/p>\n<\/td>\n<td>\n<p>Minimal or no material change<\/p>\n<\/td>\n<td>\n<p>Low Impact<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Distributing rental or investment income to low-income beneficiaries<\/p>\n<\/td>\n<td>\n<p>30% minimum tax applies to those distributions<\/p>\n<\/td>\n<td>\n<p>High Impact<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Distributing capital gains through the trust<\/p>\n<\/td>\n<td>\n<p>Combined impact of the new trust tax rules and CGT reforms<\/p>\n<\/td>\n<td>\n<p>Severe Impact<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d206ffc elementor-widget elementor-widget-heading\" data-id=\"d206ffc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Professional Practices: A Specific Concern<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7072bb2 elementor-widget elementor-widget-text-editor\" data-id=\"7072bb2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Professional service businesses, particularly medical, healthcare, legal, and financial practices, have commonly used discretionary trusts to distribute income across family members. The new 30% minimum tax significantly reduces the effectiveness of these arrangements where distributions are directed to lower-income beneficiaries. Our specialist resources for\u00a0<a href=\"https:\/\/befreeltd.com\/au\/industries\/medical-and-healthcare\/\">medical and healthcare business accounting<\/a>\u00a0cover the specific implications for healthcare professionals in more detail.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-228457c elementor-widget elementor-widget-heading\" data-id=\"228457c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Much More Tax Will You Actually Pay?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9b58ed9 elementor-widget elementor-widget-text-editor\" data-id=\"9b58ed9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The financial impact of the 30% minimum tax will depend on how trust income is currently distributed and the tax position of each beneficiary.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7fed61a elementor-widget elementor-widget-heading\" data-id=\"7fed61a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Scenario A: Family Business Distributing to a Spouse<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a39aabe elementor-widget elementor-widget-text-editor\" data-id=\"a39aabe\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>A business earning $400,000 through a discretionary trust currently distributes $150,000 to a spouse with no other income.<\/p><table><tbody><tr><td><p><strong>Particulars<\/strong><\/p><\/td><td><p><strong>Current Rules<\/strong><\/p><\/td><td><p><strong>From 1 July 2028<\/strong><\/p><\/td><\/tr><tr><td><p>Distribution amount<\/p><\/td><td><p>$150,000<\/p><\/td><td><p>$150,000<\/p><\/td><\/tr><tr><td><p>Tax payable<\/p><\/td><td><p>~$39,838\u00a0<\/p><\/td><td><p>$45,000<\/p><\/td><\/tr><tr><td><p>Net amount received<\/p><\/td><td><p>~$110,162\u00a0<\/p><\/td><td><p>$105,000<\/p><\/td><\/tr><tr><td><p>Additional annual tax<\/p><\/td><td><p>\u2014<\/p><\/td><td><p>~$5,162\u00a0<\/p><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d7115c3 elementor-widget elementor-widget-heading\" data-id=\"d7115c3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Scenario B: Medical Practice Distributing to Adult Children<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-73b3562 elementor-widget elementor-widget-text-editor\" data-id=\"73b3562\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>A medical practice distributes $60,000 each to two adult children with no other taxable income.<\/p><table><tbody><tr><td><p><strong>Particulars<\/strong><\/p><\/td><td><p><strong>Current Rules<\/strong><\/p><\/td><td><p><strong>From 1 July 2028<\/strong><\/p><\/td><\/tr><tr><td><p>Total distributions<\/p><\/td><td><p>$120,000<\/p><\/td><td><p>$120,000<\/p><\/td><\/tr><tr><td><p>Combined tax payable<\/p><\/td><td><p>~$19,976\u00a0<\/p><\/td><td><p>$36,000<\/p><\/td><\/tr><tr><td><p>Additional annual tax<\/p><\/td><td><p>\u2014<\/p><\/td><td><p>$16,024<\/p><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d0f1ed6 elementor-widget elementor-widget-heading\" data-id=\"d0f1ed6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Scenario C: Distributions to Higher-Income Beneficiaries<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ef70db2 elementor-widget elementor-widget-text-editor\" data-id=\"ef70db2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Where trust distributions are already made to beneficiaries earning above the 30% tax threshold, the reforms may have little or no material impact on the overall tax outcome.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d88e2ac elementor-widget elementor-widget-heading\" data-id=\"d88e2ac\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Is a Company, Unit Trust, or Partnership Better for You Now?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5e410a1 elementor-widget elementor-widget-text-editor\" data-id=\"5e410a1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The introduction of the 30% minimum trust tax has led many business owners to reassess whether alternative business structures may now offer better long-term tax efficiency and operational flexibility.<\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><strong>Factor<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Discretionary Trust<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Company (Pty Ltd)<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Unit Trust<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Partnership<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Tax on distributed profit<\/p>\n<\/td>\n<td>\n<p>30% minimum tax applies<\/p>\n<\/td>\n<td>\n<p>25\u201330% company tax rate<\/p>\n<\/td>\n<td>\n<p>Beneficiary marginal tax rates apply<\/p>\n<\/td>\n<td>\n<p>Partner marginal tax rates apply<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Income distribution flexibility<\/p>\n<\/td>\n<td>\n<p>Reduced under the new rules<\/p>\n<\/td>\n<td>\n<p>Dividends paid to shareholders<\/p>\n<\/td>\n<td>\n<p>Fixed unit entitlements<\/p>\n<\/td>\n<td>\n<p>Fixed profit-sharing ratios<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Asset protection<\/p>\n<\/td>\n<td>\n<p>Strong<\/p>\n<\/td>\n<td>\n<p>Moderate<\/p>\n<\/td>\n<td>\n<p>Moderate<\/p>\n<\/td>\n<td>\n<p>Limited<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>CGT treatment<\/p>\n<\/td>\n<td>\n<p>Subject to revised trust and CGT rules<\/p>\n<\/td>\n<td>\n<p>No CGT discount at the company level<\/p>\n<\/td>\n<td>\n<p>Standard CGT concessions may apply<\/p>\n<\/td>\n<td>\n<p>Standard CGT concessions may apply<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Estate and succession planning<\/p>\n<\/td>\n<td>\n<p>Flexible trustee control<\/p>\n<\/td>\n<td>\n<p>Ownership transferred via shares<\/p>\n<\/td>\n<td>\n<p>Fixed ownership interests<\/p>\n<\/td>\n<td>\n<p>Governed by a partnership agreement<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Franking credits<\/p>\n<\/td>\n<td>\n<p>Can flow through distributions<\/p>\n<\/td>\n<td>\n<p>Generated through company dividends<\/p>\n<\/td>\n<td>\n<p>Limited pass-through availability<\/p>\n<\/td>\n<td>\n<p>Not applicable<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Restructure rollover relief<\/p>\n<\/td>\n<td>\n<p>Available during the 2027\u20132030 relief window<\/p>\n<\/td>\n<td>\n<p>Eligible to receive rolled-over assets<\/p>\n<\/td>\n<td>\n<p>Eligible in certain restructures<\/p>\n<\/td>\n<td>\n<p>Less commonly used for restructures<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f9d7810 elementor-widget elementor-widget-heading\" data-id=\"f9d7810\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">The Three-Year Rollover Relief Window \u2014 How to Use It<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b4758d2 elementor-widget elementor-widget-text-editor\" data-id=\"b4758d2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The 2026 Budget reforms include a three-year rollover relief window from 1 July 2028 to 30 June 2030, allowing eligible businesses to restructure discretionary trusts without triggering immediate CGT or, in some cases, stamp duty liabilities.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-900c9a0 elementor-widget elementor-widget-heading\" data-id=\"900c9a0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What the Rollover Relief Allows<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-be62bd2 elementor-widget elementor-widget-text-editor\" data-id=\"be62bd2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul>\n<li>Transfer eligible trust assets into alternative structures such as companies or unit trusts<\/li>\n<li>Access potential CGT and stamp duty relief on qualifying restructures<\/li>\n<li>Restructure business entities without immediate tax consequences where eligibility requirements are met<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2d380c4 elementor-widget elementor-widget-heading\" data-id=\"2d380c4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What the Rollover Relief Does Not Do<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0260998 elementor-widget elementor-widget-text-editor\" data-id=\"0260998\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul>\n<li>The 30% minimum tax still applies to trust distributions made from 1 July 2027<\/li>\n<li>Certain deemed disposal or pre-CGT events may still create tax liabilities<\/li>\n<li>The rollover relief is not automatic and requires proper legal structuring, documentation, and tax elections<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-62c53f7 elementor-widget elementor-widget-heading\" data-id=\"62c53f7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Distribution Planning, EOFY, and Payroll Implications<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6d2172d elementor-widget elementor-widget-heading\" data-id=\"6d2172d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Trust Resolutions Before 30 June Each Year<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-51c743c elementor-widget elementor-widget-text-editor\" data-id=\"51c743c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Discretionary trusts must finalise distribution resolutions before 30 June each financial year to determine how trust income is allocated to beneficiaries. Failure to do so may result in undistributed income being taxed at the top marginal rate. Understanding\u00a0<a href=\"https:\/\/befreeltd.com\/au\/resources\/blogs\/financial-year-australia\/\">how the Australian financial year works<\/a>\u00a0and the importance of the 30 June deadline is essential for trustees and beneficiaries alike.<\/p><p>From FY2027\u201328 onwards, trustees will also need to consider the 30% minimum tax when planning distributions, particularly where income is directed to lower-income beneficiaries.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-43d12f5 elementor-widget elementor-widget-heading\" data-id=\"43d12f5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Payroll and Salary Packaging Through Trusts<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-579561e elementor-widget elementor-widget-text-editor\" data-id=\"579561e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Many business owners combine salary payments with trust distributions to manage PAYG and overall tax outcomes. Under the new rules, this strategy may become less effective where distributions are made to beneficiaries below the 30% threshold.<\/p><p>Businesses should also review payroll compliance ahead of Payday Super commencing from 1 July 2026. Our\u00a0<a href=\"https:\/\/befreeltd.com\/au\/services\/payroll-outsourcing\/\">outsourced payroll services<\/a>\u00a0support businesses with payroll compliance, reporting, and remuneration structuring.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fd535b7 elementor-widget elementor-widget-heading\" data-id=\"fd535b7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Trusts Distributing to Companies<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5dda1f6 elementor-widget elementor-widget-text-editor\" data-id=\"5dda1f6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Some trusts distribute income to corporate beneficiaries to cap tax at the company tax rate. With the new 30% minimum tax broadly aligning with company tax rates, the effectiveness of this strategy may be reduced under the revised rules.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-936e1bd elementor-widget elementor-widget-heading\" data-id=\"936e1bd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Common Mistakes to Avoid<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5957f81 elementor-widget elementor-widget-text-editor\" data-id=\"5957f81\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul>\n<li>Delaying trust restructuring discussions until after 1 July 2028, leaving limited time within the rollover relief window<\/li>\n<li>\u00a0Assuming rollover relief applies automatically without proper legal documentation and tax elections<\/li>\n<li>\u00a0Failing to assess the CGT implications of restructuring or asset transfers<\/li>\n<li>\u00a0Continuing pre-2027 distribution strategies without reviewing the impact of the 30% minimum tax<\/li>\n<li>\u00a0Relying on outdated trust deeds that may restrict distribution flexibility under the new rules<\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-923d1f3 elementor-widget elementor-widget-heading\" data-id=\"923d1f3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Key Dates for Family Trust Holders<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6199866 elementor-widget elementor-widget-text-editor\" data-id=\"6199866\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<table>\n<tbody>\n<tr>\n<td>\n<p><strong>Date<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Key Consideration<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Priority<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>30 June 2027\u00a0<\/p>\n<\/td>\n<td>\n<p>Finalise trust distribution resolutions under the current rules and begin restructuring reviews<\/p>\n<\/td>\n<td>\n<p>High<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>1 July 2027\u00a0<\/p>\n<\/td>\n<td>\n<p>Commence trust modelling, structure reviews, and valuation planning<\/p>\n<\/td>\n<td>\n<p>Important<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>30 June 2028\u00a0<\/p>\n<\/td>\n<td>\n<p>Final distribution resolution before the new trust tax rules apply<\/p>\n<\/td>\n<td>\n<p>Critical<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>1 July 2028<\/p>\n<\/td>\n<td>\n<p>30% minimum trust tax and related CGT reforms commence; rollover relief window opens<\/p>\n<\/td>\n<td>\n<p>Deadline<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>30 June 2029<\/p>\n<\/td>\n<td>\n<p>Recommended target date for completing eligible restructures<\/p>\n<\/td>\n<td>\n<p>Target<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>30 June 2031<\/p>\n<\/td>\n<td>\n<p>Rollover relief window closes for eligible trust restructures<\/p>\n<\/td>\n<td>\n<p>Final Deadline<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-de5a0e9 elementor-widget elementor-widget-heading\" data-id=\"de5a0e9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">So, Is Your Family Trust Still Tax-Effective?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a04c26b elementor-widget elementor-widget-text-editor\" data-id=\"a04c26b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The impact of the 2026 reforms will depend largely on how your trust currently distributes income.<\/p>\n<p>Where distributions are primarily made to lower-income beneficiaries, the tax advantages of discretionary trusts are likely to be reduced significantly from 1 July 2028. However, for trusts distributing mainly to higher-income beneficiaries, the overall impact may be more limited.<\/p>\n<p>Importantly, discretionary trusts still retain key benefits around asset protection, estate planning, and succession flexibility. The introduction of the 2027\u20132030 rollover relief window also provides an opportunity for eligible businesses to review and restructure their existing arrangements where appropriate.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eb4b3b2 elementor-widget elementor-widget-heading\" data-id=\"eb4b3b2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Frequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8dac4c3 elementor-widget elementor-widget-n-accordion\" data-id=\"8dac4c3\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:300,&quot;sizes&quot;:[]},&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1480\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-1480\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> Do I Have to Wind Up My Family Trust? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1480\" class=\"elementor-element elementor-element-0b382e1 e-con-full e-flex e-con e-child\" data-id=\"0b382e1\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-85d695d elementor-widget elementor-widget-text-editor\" data-id=\"85d695d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>No. The 30% minimum tax changes how trust distributions are taxed, but it does not require trusts to be dissolved. Whether restructuring is appropriate will depend on the trust\u2019s assets, distribution strategy, and long-term business objectives.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1481\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1481\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> What if My Trust Deed Says I Cannot Change the Distribution Pattern? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1481\" class=\"elementor-element elementor-element-d845853 e-con-full e-flex e-con e-child\" data-id=\"d845853\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a0e59d8 elementor-widget elementor-widget-text-editor\" data-id=\"a0e59d8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Some trust deeds contain restrictions on how income can be distributed between beneficiaries. Where these limitations create issues under the new rules, the deed may need to be reviewed or updated with legal advice to improve future flexibility.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1482\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1482\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> Can I Still Distribute to a Corporate Beneficiary to Cap Tax at the Company Rate? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1482\" class=\"elementor-element elementor-element-36983b2 e-con-full e-flex e-con e-child\" data-id=\"36983b2\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-689a724 elementor-widget elementor-widget-text-editor\" data-id=\"689a724\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Yes, although the advantage may be reduced under the new rules. With the 30% minimum tax broadly aligning with company tax rates, distributions to corporate beneficiaries may provide less tax efficiency than under the previous framework. The overall impact will depend on the broader group structure and future dividend planning.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1483\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1483\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><h3 class=\"e-n-accordion-item-title-text\"> If I Restructure Into a Company, Can I Still Pass Assets to My Children? <\/h3><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1483\" class=\"elementor-element elementor-element-ec48ce6 e-con-full e-flex e-con e-child\" data-id=\"ec48ce6\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ef6098f elementor-widget elementor-widget-text-editor\" data-id=\"ef6098f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Yes, although succession planning works differently in a company structure. Instead of varying trust distributions, ownership is generally transferred through shares, dividends, or estate arrangements, each with separate legal and tax considerations.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Do I Have to Wind Up My Family Trust?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. The 30% minimum tax changes how trust distributions are taxed, but it does not require trusts to be dissolved. Whether restructuring is appropriate will depend on the trust\\u2019s assets, distribution strategy, and long-term business objectives.\"}},{\"@type\":\"Question\",\"name\":\"What if My Trust Deed Says I Cannot Change the Distribution Pattern?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Some trust deeds contain restrictions on how income can be distributed between beneficiaries. Where these limitations create issues under the new rules, the deed may need to be reviewed or updated with legal advice to improve future flexibility.\"}},{\"@type\":\"Question\",\"name\":\"Can I Still Distribute to a Corporate Beneficiary to Cap Tax at the Company Rate?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, although the advantage may be reduced under the new rules. With the 30% minimum tax broadly aligning with company tax rates, distributions to corporate beneficiaries may provide less tax efficiency than under the previous framework. The overall impact will depend on the broader group structure and future dividend planning.\"}},{\"@type\":\"Question\",\"name\":\"If I Restructure Into a Company, Can I Still Pass Assets to My Children?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes, although succession planning works differently in a company structure. Instead of varying trust distributions, ownership is generally transferred through shares, dividends, or estate arrangements, each with separate legal and tax considerations.\"}}]}<\/script>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>For Australian business owners and investors, the family trust has long been a cornerstone of tax and wealth planning. Its flexibility, asset protection benefits, and income-splitting efficiency made discretionary trusts the structure of choice for generations of family businesses. The 2026 Federal Budget\u00a0introduces a 30% minimum tax on trust-distributed income from 1 July 2028, a [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":17778,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-17777","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Family Trust Tax Changes 2026: What Business Owners Need<\/title>\n<meta name=\"description\" content=\"Learn how the 2026 Budget changes affect family trusts, trust distributions, CGT, and tax planning. Understand the impact on Australian businesses.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Webmaster\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Family Trust Tax Changes 2026: What Business Owners Need","description":"Learn how the 2026 Budget changes affect family trusts, trust distributions, CGT, and tax planning. 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