The Treasury has drafted a rule that would set a minimum 30 per cent tax on payouts by discretionary trusts. Church groups warn the move wipe out $3 billion of charitable donations. The proposal focuses on arrangements that rely on flexible distribution setups to reduce their tax bills.
Lawmakers are examining the relief scheme that varies by postcode, a system opponents called a lottery. The government has launched a public consultation window for the tax plan. Stakeholders have a short window to comment on the proposals before a decision is made.