Labor leaves door open to an additional trust tax exemption
Labor is considering additional exemptions for certain trusts in response to budget tax changes. Prime Minister Anthony Albanese indicated that there would be consultations regarding discretionary testamentary trusts, which could be impacted by a proposed 30 percent tax. The government is also working on carve-outs for startups affected by a new capital gains tax discount linked to inflation.
- ▪Labor has not ruled out exempting discretionary testamentary trusts from a new minimum tax.
- ▪Prime Minister Anthony Albanese stated there would be consultations on the trust changes after budget announcements.
- ▪The Coalition has criticized the proposed tax as a 'death tax by stealth' affecting inheritances.
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Labor leaves door open to an additional trust tax exemptionCBy Clare ArmstrongTopic:TaxFri 22 May 2026 at 8:39pmFri 22 May 2026 at 8:39pmFri 22 May 2026 at 8:39pmLabor is also working on carve-outs for startup businesses that could be impacted. (ABC News: Matt Roberts)In short: A flexible trust used by a small number of Australians to distribute assets left to beneficiaries of their will could be exempted from Labor's tax changes.Prime Minister Anthony Albanese said there would be more consultation on discretionary trusts, leaving the door open to a carve-out for one type initially included in a 30 per cent tax proposed in the budget.What's next?Labor is also working on carve-outs for startup businesses it has acknowledged would be disproportionately impacted by a new inflation-linked…
Excerpt limited to ~120 words for fair-use compliance. The full article is at ABC News (Australia).