The Treasury has drafted a rule that would set a minimum 30 per cent tax on payouts by discretionary trusts. Church groups say this could cut up to $3 billion of charitable donations. The proposal focuses on arrangements that rely on flexible distribution setups to reduce their tax bills.
Lawmakers are also reviewing the relief scheme that differs across postcode, a system opponents called a random process. The government has opened a public consultation window for the tax plan. Stakeholders have a limited time to comment on the proposals before a decision is made.