Proposed family trust tax

From 1 July 2028 the trustee would pay at least 30% on the trust’s net income. Each beneficiary other than a company gets a matching 30% credit, but the credit is not refundable. It only helps where the beneficiary’s own tax for the year is large enough to absorb it.

Every family group is different. Some have one trust and two people; others add a bucket company, adult children or a second trust. Build your own group below, or load an example, then change the income, the shares and whether each trust stays in the trust tax or opts out. The planner adds up the tax on the trusts’ income across the whole group, today and under the proposed rules.

Where one trust distributes to another, the receiving trust uses the 30% credit against its own 30% and passes a credit on to its beneficiaries. The credit is lost where the receiving trust has a loss or has opted out, or where the income ends up in a company.

A family trust existing on 1 July 2028 could opt out of the minimum tax by nominating fixed percentages of all its income and capital for named beneficiaries, every year. The election must be made for 2028–29 and notified by the time that return is due or lodged. Answer the questions below to see which constraints would matter for your family.

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