Under the Hood: Before the storm on discretionary trusts

In this episode of Under the Hood, Accountants Daily journalist Carlos Tse is joined by Matthew Burgess, co-founder and director at View Legal, to unpack the government's proposed 30 per cent minimum tax on discretionary trusts and why comprehensive reform of Australia's trust taxation system is needed.

Carlos and Matthew discuss the proposed minimum tax on discretionary trusts and the uncertainty surrounding the government's approach to reform. They explore the growing complexity of Australia's trust taxation system, including the risks associated with family trust distribution tax (FTDT), family trust elections, and interposed entity elections. Matthew argues that a more effective approach would involve a comprehensive, collaborative review of trust taxation, with input from key stakeholders and a focus on addressing specific problems rather than introducing further complexity. Tune in to hear more about: Uncertainty surrounding the government's proposed 30 per cent minimum tax on discretionary trusts. Why successive layers of tax reform are adding complexity to an already challenging system. The risks associated with FTDT, family trust elections, and interposed entity elections. How the proposed changes could affect business decisions, estate planning, and intergenerational wealth transfers. The growing compliance burden on accountants and the challenges of delivering the additional advice required. Why a collaborative, bipartisan approach to comprehensive trust tax reform could deliver better outcomes. Editor's note: This episode was recorded prior to the government's latest tranche of discretionary trust reforms on 14 October.