Independent · Evidence-Based · Non-Partisan

Better-targeted trust reform, not blunter tax.

Fair Trust Reform is an independent policy initiative researching how discretionary trust taxation can achieve its integrity goals without imposing disproportionate costs on compliant, long-established family trusts.

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Proposed minimum tax — key figures
Proposed flat trustee tax30%
Proposed safe-harbour threshold$100k–$150k
Avg. restructuring duty exposure~$130,000
Small businesses using a trust<15%
Why This Matters

One federal reform, three places it can misfire.

A minimum tax aimed at high-wealth avoidance can still land badly on ordinary, compliant trusts when it meets existing law at these three points.

Federal ↔ State

The stamp duty trap

A federal CGT rollover doesn't waive State transfer duty. Restructuring out of a trust can still trigger a six-figure duty bill the rollover was meant to avoid.

Trust ↔ Beneficiary

Trapped tax credits

A flat trustee-level tax bypasses individual tax-free thresholds. Retirees and student beneficiaries on low personal rates can end up paying more, not less.

Old law ↔ New law

Duplicated integrity tools

Section 100A and PCG 2022/2 already separate genuine family dealings from artificial schemes. A blanket rate risks re-solving a problem the law already targets.

Current Issue

The proposed minimum tax on discretionary trusts

Our submission to Treasury supports the integrity goal of the July 2026 Consultation Paper, and proposes three refinements: an objective net-income floor, alignment with the existing testamentary trust carve-out, and coordinated Commonwealth–State restructuring relief.

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$95,000
Illustrative case-study trust income
$28,500
Upfront trustee tax at 30%, no floor
2027–2030
Proposed federal CGT rollover window
Publications

The publication register

Every Fair Trust Reform release carries a permanent ID, a version, and a status. Nothing is published until it clears our privacy and evidence review.

How We Work

Principles before positions

Evidence before opinion Constructive engagement Respect Independence Transparency