iscover Under the Hood: Are discretionary trusts dead?
TaxIn this episode of Under the Hood, Accountants Daily journalist Carlos Tse is joined by Dianne Hanna, an accountant with more than 25 years of experience, and Lee-Ann Hayes, head of education at Accurium and TaxBanter, as they go back in time on the discretionary trust, how the government’s proposals will impact the structure, and its survival post-legislation.
Carlos, Dianne, and Lee explore the evolving role of discretionary trusts in Australia’s tax and business landscape, examining how proposed reforms could reshape their use and the decisions accountants will need to make for their clients.
They discuss the three options available to trustees if the proposed reforms become law: accepting the minimum tax, restructuring into another entity, or making an election to lock in distributions to beneficiaries in fixed proportions.
Dianne and Lee also examine why discretionary trusts may remain valuable beyond their tax advantages, particularly for asset protection, succession planning, and commercial risk management. They explore the complexities of restructuring, including potential stamp duty implications, and the growing pressure on accountants to keep pace with an increasingly complex and rapidly changing regulatory environment.
Tune in to hear more about:
- How discretionary trusts have evolved through key court cases and changes in tax administration.
- The proposed 30 per cent minimum tax and the three options available to trustees.
- Why discretionary trusts may remain relevant for asset protection, succession planning and risk management.
- How accountants can assess whether to retain, restructure or make an election for existing trust arrangements.
- Why the proposed reforms may not affect all taxpayers in the same way.
- The potential stamp duty and legal implications of restructuring discretionary trusts.
- Where the reforms could create new opportunities for accountants and their clients.
- How the pace and complexity of legislative change are affecting the accounting profession.
- Why education, professional networks, and collaboration are becoming increasingly important for practitioners.
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