Policy Area · In Development

Transitional Arrangements

Treasury has proposed a three-year window to ease the shift away from discretionary trusts. Whether that window is practically workable is a separate question from whether it exists.

Treasury's Consultation Paper proposes a federal capital gains tax rollover from 1 July 2027 to 30 June 2030, giving families a defined window to restructure out of a discretionary trust without triggering a federal CGT liability on the transfer.

As set out in our Minimum Tax analysis, that relief doesn't extend to State transfer duty — so for trusts holding real property, the federal window can open a restructuring path that a State duty bill immediately closes again.

Fair Trust Reform Analysis

Coordination first, then practicality

Our primary recommendation — coordinated Commonwealth–State restructuring relief through National Cabinet — is set out in full in our Minimum Tax analysis. Whether three years is long enough in practice, once genuine coordination is achieved, is a question we're still working through.

Key Questions

What we're still working through

Is three years enough time for accountants, lawyers and State revenue offices to process a national wave of restructuring?
Should relief automatically extend if Commonwealth–State coordination isn't reached before the window opens?
Would a staged or means-tested transition period be more workable than a single fixed window for every affected trust?

Related Publications