The Treasury has drafted a rule that would impose a 30 per cent tax on payouts by discretionary trusts. Church groups warn the move cut up to $3 billion of charitable donations. The proposal targets trusts that use flexible distribution setups to reduce 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 submission period for the tax plan. Stakeholders have a limited time to respond to the proposals before a final call is reached.