Summary: Treasury has released consultation material on reforms affecting discretionary trusts and capital gains tax concessions. Treasury says all 2.7 million active small businesses would remain eligible for the 50% active asset reduction, and more than 90% of active businesses would remain eligible for all four existing small business CGT concessions. Media reporting says the consultation has raised concern among small business and investment groups, with submissions due 31 July 2026.
Why it matters: Trust structures are common among family businesses, professional services, property-linked businesses and investment entities. Proposed changes may affect future tax planning, succession and restructuring decisions.
Who is affected: Businesses operating through discretionary trusts, family groups, accountants, advisers and business owners planning exits or asset sales.
Fact Sheets: Capital Gains Tax and Discretionary Trusts Reform: Small business explainer
Make a submission: Treasury Consultation hub/Minimum tax on discretionary trusts