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