Global Daily Tax News, Australia Excludes Testamentary Trusts From CGT Minimum Tax, (Jun 22, 2026)

The Australian Treasury has confirmed that all types of testamentary trusts will be exempt from the minimum tax announced in Australia's latest Budget, including future discretionary testamentary trusts.

In the 2026– Budget, the government announced changes to capital gains tax.

It announced it would replace the 50 percent CGT discount with: cost base indexation and a 30 per cent minimum tax rate. These changes will apply from July 1, 2027.

In a June 18, 2026, statement, the Government said, "The Government will continue to develop further tranches of legislation to implement the Budget tax reform package, consistent with the process for legislating other large tax reform packages in the past."

"This will include the release of a consultation paper on implementation of the minimum tax on discretionary trusts in the coming weeks which will provide further details on the proposed implementation approach."

"In response to targeted consultation following the Budget, the Government will exempt income from all types of discretionary testamentary trusts from the minimum tax provided they are established for genuine testamentary purposes."

"The exclusion will be limited to income from assets of the deceased estate. For discretionary testamentary trusts established on or after July 1, 2028, the exclusion will only apply to trusts that can only benefit individuals and income tax exempt entities."

"We have been clear that there is no tax on inheritances or deceased estates but we are taking this step to put this beyond doubt."