The capital gains tax (CGT) changes are law and start on 1 July 2027. A 30% minimum tax on discretionary (family) trusts is proposed from 1 July 2028 and is still before Parliament. Choose a topic below to see how each change could play out in your own numbers.
Law from 1 July 2027. The 50% discount ends for later growth, existing assets are valued at 30 June 2027 and individuals pay at least 30%. Split your own gain and compare it with the old rules.
Model your gain → TrustsProposed from 1 July 2028 and still before the Senate. See who pays more, build your own family group and test whether opting out could suit you.
Model your family group →Prefer to read it through? The full explanation covers both changes in one place, with a worked case study, the three options for each trust and answers to common client questions.
| Item | Status and what it means | Our take |
|---|
Legislate first, consult second, patch third.
We remain opposed to these changes. The CGT law passed in June, consultation on its detail closed in August, and further amendments are already back before Parliament.
The trust Bill introduced on 14 October brings one real surprise: an opt-out election, known as an excluded election trust (EET) election, that was not part of the Budget announcement. It sounds good in theory, but it swaps the 30% minimum tax for a permanent, fixed split of income and capital, removing much of the flexibility a family trust exists to provide. You can test how it might fit your family in the opt-out check below. The WA Treasurer’s indication that the election alone will not attract transfer duty is welcome. Moving assets into a new structure is another matter.
Our advice is unchanged. Restructuring now, against incomplete rules, is high risk and unlikely to add value.
We are keeping a watching brief until the rules are settled. As the position becomes clearer, we will also look to the conclusions and guidance of tax experts, professional bodies and our peers on how best to navigate this new tax world. We will then move to a review and implementation brief and contact affected clients directly.
Law from 1 July 2027. Split your gain at 30 June 2027, compare a valuation with the Government formula and see the tax against the old rules.
Model your gain → TrustsProposed from 1 July 2028. Build your family group, compare a wage with distributions and test the opt-out election.
Model your family group → ReadBoth changes explained in one place, with a worked case study, the options for each trust and short answers to client questions.
Read it → WorkersFrom 2026–27, an automatic deduction with no receipts. See whether claiming your own expenses would give you more back.
Check your options → CarsThe 12-week rule, what each trip needs, where logbooks fail, and whether a logbook beats 91 cents a kilometre.
Read and compare → TalkBring your summary to a consultation with a Porters CA Chartered Accountant in South Perth or Albany.
Book a consultation →