Treasurer says 'death tax' claims are a scare campaign, 'pure and simple'
The Treasurer has dismissed claims that a proposed minimum tax on discretionary testamentary trusts constitutes a 'death tax', labeling it a scare campaign. The federal government aims to impose a 30 percent tax rate on disbursements from these trusts to curb tax avoidance among wealthy Australians. Despite the Coalition's concerns, the Treasurer emphasized that no inheritance taxes or death duties are being introduced in the budget.
- ▪The federal government plans to impose a minimum 30 percent tax rate on discretionary trusts, including testamentary trusts.
- ▪The Coalition argues that this tax on disbursements from testamentary trusts amounts to a 'death tax'.
- ▪Treasurer Jim Chalmers stated that existing testamentary trusts will be exempt from the new tax changes.
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Treasurer says 'death tax' claims are a scare campaign, 'pure and simple'By senior political correspondent Jake EvansTopic:TaxMon 18 May 2026 at 3:53pmMon 18 May 2026 at 3:53pmMon 18 May 2026 at 3:53pmJim Chalmers says claims the minimum tax on discretionary testamentary trusts amounted to a "death tax" were a scare campaign. (ABC News: Lucas Hill)In short:The federal government wants to impose a minimum 30 per cent tax rate on discretionary trusts, including those established at death, known as "testamentary trusts".The Coalition claims taxing disbursements from those trusts would amount to a "death tax".What's next?Legislation to establish the minimum tax rate will be introduced to parliament.abc.net.au/news/treasurer-discretionary-testamentary-trusts-death-tax-scare/106691132Link…
Excerpt limited to ~120 words for fair-use compliance. The full article is at ABC News (Australia).