State governments have left open the possibility of charging stamp duty on trusts that choose to fix annual distributions to dodge a new 30 per cent minimum tax rate, casting serious doubt over Jim Chalmers’ promise that the shift would remain duty-free.
The government’s new $45bn trust legislation, which the opposition says it would instantly repeal, has also raised concerns among tax experts over family succession planning, trustees duties and compliance.
Labor’s new minimum 30 per cent tax pushes trusts to restructure into companies with lower tax rates, but such a move triggers stamp duty. The government has since offered an option whereby trusts can switch their distributions from discretionary to fixed, which avoids the minimum 30 per cent tax, but experts have said the switch would still leave them subject to stamp duty.
Read the full article here: State revenue offices leave door open to tax trusts switching to fixed distribution model
