Last week, Cowell Clarke’s Tax, Revenue & Superannuation team made submissions to Federal Treasury on the proposed minimum taxation on discretionary trusts regime to be effected on 1 July 2028.
The team consider that the entire proposal requires fundamental change, with the punitive taxation treatment undermining the important asset protection and succession planning role for discretionary trusts as a mainstream and legitimate business and investment vehicle including for the holding of equity in companies and fixed unit trusts. Moreover, the supposed exemption for primary production income is unlikely to apply to many genuine primary producers.
Click to read our submission here.
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