This session provides a practical and technical overview of Treasury’s exposure draft legislation for the proposed 30% minimum tax on discretionary trusts, released 3 September 2026 and due to commence from 1 July 2028.

Participants will gain an understanding of how the proposed minimum tax operates, which trusts and beneficiaries fall within and outside its scope, and how the offset mechanism affects the practical exposure for different client profiles.

Special focus is given to the proposed fixed-distribution election, which may allow an eligible discretionary trust to sit outside the minimum tax entirely, and to the consequences of making an election that is available once and cannot subsequently be varied.

The session aims to equip practitioners to assess which client trusts are genuinely affected, advise on whether an election is appropriate, and plan for the transitional deadlines ahead of 1 July 2028.

Objectives:

• Identify which trusts, beneficiaries and distributions fall within the scope of the proposed 30% minimum tax

• Apply the exclusions and exemptions, including fixed trusts, complying superannuation funds and distributions to registered charities and DGRs
  

• Explain the operation and eligibility requirements of the proposed fixed-distribution election
  

• Evaluate the consequences of making an election, including its effect on trust flexibility and future capital receipts
  

• Understand the proposed codified definition of a fixed trust and its wider application across the tax law
  

• Assess rollover relief as an alternative to election, and identify where restructuring is and is not appropriate
  

• Recognise the transitional deadlines applying before 1 July 2027 and 1 July 2028