Is Your Family Trust Still the Right Structure After Budget 2026?
Family trusts have long been used by Australian business owners for tax planning, asset protection, family wealth management and succession planning.
Federal Budget 2026 has now put those structures under greater scrutiny.
The Government has proposed a 30% minimum tax on discretionary trusts from 1 July 2028. The ATO has confirmed the measure is not yet law, but the proposed change is significant enough that business owners should not wait until 2028 to review their arrangements.
For many family businesses, the issue is not whether a trust is “good” or “bad”. The issue is whether the current structure still suits the way the business earns income, distributes profits, holds assets and plans for succession.
This is especially important where a family trust is being used to:
- Hold business assets
- Distribute income to family members
- Manage investments
- Support succession planning
- Prepare a business for sale
- Separate trading risk from asset ownership
A structure that worked five or ten years ago may not be the right structure now.
Evergreen Accounting is encouraging business owners to review their family trust arrangements before 30 June, particularly where multiple entities, family members or future sale plans are involved.
The smartest question to ask now is simple: is your family trust still working for you, or are you just assuming it is?
Speak with Evergreen Accounting about a Federal Budget Business Structure Review before EOFY.
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Disclaimer: All information in this article is general in nature and is not intended to be advice specific to your circumstances.
