Australia: Income Tax

The Australian Treasury has released exposure draft legislation detailing the implementation of a 30% minimum tax on discretionary trusts, introducing a new election regime that allows trusts to nominate fixed distribution entitlements and avoid the minimum tax. While the draft addresses stakeholder feedback and provides rollover relief for restructuring, it presents complex compliance requirements, strict limitations on beneficiary variations, and potential resettlement issues that may create challenges

Separating couples often overlook the tax implications of property settlements, only to face unexpected capital gains tax liabilities years later when assets are sold. With the 2025 amendments to the Family Law Act fundamentally changing how uncrystallised CGT liabilities are treated, understanding the interplay between tax law and family law has become critical to preserving the real value of a settlement. This analysis examines how strategic tax structuring at the point of settlement—including CGT r

In our earlier article, we examined the Full Federal Court’s decision in Commissioner of Taxation v Bendel [2025] FCAFC 15, which rejected the ATO’s long-standing position that unpaid present entitlements (UPEs) owed to corporate beneficiaries could constitute “loans” for the purposes of Division 7A.

On 28 May 2026 the federal government introduced a Bill to Parliament to give effect to the wide-ranging capital gains tax (CGT) and negative gearing changes that had been announced in the 2026-27 Federal Budget

Members' Voluntary Liquidation (MVL) offers solvent companies a structured, tax-effective way to wind up operations and return surplus capital to shareholders. When is this lesser-known option the right choice for business owners, and what benefits can it deliver compared to informal deregistration or leaving a dormant company in place?

The 2026 Federal Budget has introduced significant changes to how discretionary trusts, including testamentary discretionary trusts (TDTs), will be taxed. If passed, these changes have far-reaching implications for estate planning strategies that many families use to protect and pass on wealth.

The ATO has published a draft practical compliance guideline outlining its planned approach to the Payday Superannuation reforms for the Financial Year 2026 to 2027.

On 30 October 2025, the Federal Court of Australia handed down its decision in YTL Power Investments Limited v Commissioner of Taxation of the Commonwealth of Australia [2025] FCA 1317.

On 1 October 2025, the Commissioner of Taxation (Commissioner) updated his draft guidance (Draft Guidance) on the third party debt test (TDPT) by publishing...