The Treasury has drafted a rule that would set a minimum 30 per cent tax on distributions from discretionary trusts. Church groups warn the move wipe out $3 billion of charitable donations. The proposal focuses on arrangements that use flexible distribution setups to lower their tax bills.
Lawmakers are also reviewing the relief scheme that differs across postcode, a system opponents called a lottery. The government has opened a public consultation window for the tax plan. Stakeholders have a limited time to comment on the proposals before a decision is made.