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ARTICLE · 11 SEPTEMBER 2026

Minimum Tax On Discretionary Trusts: Impact For Fund Managers

Herbert Smith Freehills Kramer LLP
Herbert Smith Freehills Kramer LLP
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Herbert Smith Freehills Kramer LLP

Herbert Smith Freehills Kramer LLP

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Obtaining certainty of being classified as a ‘fixed trust’ is now more important than ever for fund managers as the trustees of most non-fixed trusts are proposed to be subject to a 30% minimum tax from 1 July 2028.

AustraliaTax
Naison Seery
Naison Seery
Toby Eggleston
Toby Eggleston
Ryan Leslie
Ryan Leslie
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Obtaining certainty of being classified as a ‘fixed trust’ is now more important than ever for fund managers as the trustees of most non-fixed trusts are proposed to be subject to a 30% minimum tax from 1 July 2028. Treasury has been busy: exposure draft legislation released last week gives legislative form to another proposal from the ground-breaking 2026 Federal budget which has already seen hundreds of pages of legislation and explanatory material in various stages from exposure draft through to enactment.

Trustees of discretionary trusts face three choices: pay the minimum tax, make a one-time fixed distribution election into the electable regime, or restructure using a specific roll-over before 30 June 2030.

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