04/06/2026
Family trusts have long been used by business owners, investors and family groups because they provide flexibility around how income and capital gains are distributed.
But proposed Budget changes could affect how that flexibility works.
From 1 July 2028, the Government has announced a proposed minimum 30% tax rate on taxable income of discretionary trusts. That could change how some family groups approach trust distributions, bucket companies and long-term tax planning.
This does not mean every trust needs to be restructured, it means the assumptions behind the structure should be reviewed.
If your business or investment structure relies on discretionary trust distributions, the question is not just:
“Has this worked in the past?”
It is:
“Will this still work under the proposed rules?”
These measures are announcements at this stage, so the detail may change. But for family groups using trusts, this is worth watching closely.
General information only. Your trust and tax position should be reviewed based on your circumstances before making decisions.
