Australia: Trusts

Before amending a trust deed, it is important to carefully review the deed to determine whether the proposed amendment is permitted and what requirements must be followed.

The Court of Appeal has upheld a landmark decision requiring the Australian Tax Office to return settlement payments totaling approximately $15 million that were funded by proceeds from a breach of fiduciary duty.

The Australian Government has released exposure draft legislation for a proposed 30% minimum tax on discretionary trusts, effective from 1 July 2028. Trustees now face three strategic pathways: remain within the minimum tax regime, restructure using transitional rollover relief, or elect into the new excluded election trust (EET) regime with restricted distribution flexibility.

The Australian Government has announced significant revisions to its 2026 tax reform package following intensive consultation, including expanded small business CGT concessions, a new innovative business CGT discount for early-stage investors, and broadened exemptions for testamentary trusts. These adjustments respond to industry feedback while maintaining the fundamental architecture of replacing the 50% CGT discount with cost base indexation and introducing a 30% minimum tax on trust distributions.

Partners Scott Hay-Bartlem and Linda Tapiolas break down the 2026 federal Budget's proposed changes to discretionary trusts, examining new tax rates, beneficiary credits, and exemptions. As legislation continues to evolve, they explore the complexities of restructuring trust and company arrangements and explain why businesses should adopt a cautious approach to these significant reforms.

Senior associate Sophia Ousager and private client partner Scott Hay-Bartlem discuss Sophia's career progression at CGW, from law clerk to senior associate, while exploring her personal interests and approach to client problem-solving. The conversation offers insights into life at the firm and the motivations that drive legal professionals in corporate advisory and private client work.

Perpetuity period for trusts extended from 80 to 125 years - new opportunities for intergenerational wealth management & tax planning.

ASIC has provided Australian financial services and credit licensees additional targeted relief under the reportable situations regime in response to feedback from industry.

Transcript & link to video - from 1/8/25, Qld trusts may vest after 125 years, but deed terms & legal steps determine if extension is possible.