New 30 per cent trust tax creates significant challenges for private groups
Client AlertThe announced 30 per cent minimum tax on discretionary trusts creates significant challenges for private groups.
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But is it time to review the strategy? From 1 July 2023 the Division 7A interest rate has increased from 4.77 per cent to 8.27 per cent, with the possibility that the rate will increase even further.
This provides an opportunity for you to meet with your advisors to review the loans you have in place and strategise around the best approach to dealing with this period of increased interest rates.
Should you wish to discuss this further in relation to your individual circumstances, please reach out to a member of our team to book in a meeting.
The announced 30 per cent minimum tax on discretionary trusts creates significant challenges for private groups.
On 10 June 2026 the High Court found that a trust’s unpaid present entitlement (UPE) to a company is not treated as a ‘loan’, and potentially subject to tax as a deemed dividend under Division 7A.
Australia’s 2026–27 Federal Budget introduces major tax reforms impacting private enterprise, including changes to capital gains tax, negative gearing, trust structures and SME incentives. Understand what it means for your business strategy, cashflow and investment decisions.