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 targets trusts that use flexible distribution setups to reduce their tax bills.
Lawmakers are examining the relief scheme that varies by postcode, a system opponents called a random process. The government has launched a public submission period for the tax plan. Stakeholders have a limited time to comment on the proposals before a decision is made.