The biggest business and wealth structuring opportunity in decades.

Not every asset will require a formal independent valuation, but owners should have reliable evidence supporting market value at 30 June 2027, because gains arising before and after that date will be treated differently and the transition value may affect tax when an asset is later sold, transferred or restructured. The appropriate evidence may range from a specialist valuation to a structured valuation pack containing financial statements, forecasts, transaction data and contemporaneous assumptions, so priority should be given to assets with large embedded gains, complex ownership, limited comparable information or a likely future transaction.

There is no longer a universal answer: a trust may remain attractive for long-term growth, asset protection, succession and distribution flexibility, while a company may deserve greater consideration where income will be retained and reinvested, ownership is stable and administrative certainty matters. The decision should be modelled over the expected life of the investment and should consider the asset, income-versus-growth profile, financing, family circumstances, losses and deductions, state taxes, exit strategy and succession objectives, rather than relying on historic assumptions or treating the structure for a new purchase as equivalent to transferring an existing asset.

Yes, bucket companies are not proposed to disappear and may continue to help retain profits, manage future distributions and franking credits, support succession planning and create restructuring flexibility, but the effectiveness of the traditional strategy may change significantly under the proposed 30% minimum tax on discretionary trust tax reforms. From 1 July 2028, corporate beneficiaries may not receive the same credit for tax paid by a trustee, potentially producing adverse or duplicated tax outcomes unless another pathway applies, so families should review trust status, company ownership, retained profits, future distributions and alignment with their wider estate and wealth objectives.

Under the draft legislation, the trustee would calculate taxable income and pay tax at a flat 30% before making distributions; individual beneficiaries would generally receive a non-refundable credit, pay additional tax where their marginal rate exceeds 30%, and may be unable to obtain a cash refund where their rate is lower. Corporate-beneficiary distributions may be treated less favourably, while exclusions and the proposed Excluded Election Trust regime may change the outcome for qualifying structures, so the practical impact depends on trust classification, beneficiary type, deed terms and elections, and the legislation remains subject to parliamentary passage and change.

Based on legislation introduced in October 2026, genuine testamentary trusts and deceased estates are expected to be largely excluded from the proposed 30% minimum tax on discretionary trusts and from the 30% minimum tax on post-1 July 2027 capital gains, subject to integrity rules. Testamentary trusts should still be reviewed because other CGT measures may apply, including a proposed deemed disposal of assets held at 30 June 2027 with tax crystallising on a later realisation, and because changes to asset ownership, control, succession plans or related family structures can affect whether an older estate plan remains suitable.

Many unit trusts may be treated more favorably because  unit trusts  may be  excluded  under the proposed new definition of a fixed trust  if there are no material discretionary elements of the unit trust capable of significantly affecting the entitlements or rights of the trust’s beneficiaries to the income or capital of the trust.  The label “unit trust” is not conclusive, however, so the deed, amendments, unit classes, trustee powers and ownership history must be reviewed; hybrid trusts and arrangements with discretionary features deserve particular attention because classification of the trust will determine whether the trust falls outside or within the proposed 30% minimum tax regime.

Not automatically: the right response may be to retain, simplify, elect within or restructure the existing arrangement, depending on whether it still meets commercial, tax, asset-protection, financing, control, succession and estate-planning objectives under the emerging rules. A proposed rollover period from 1 July 2027 to 30 June 2030 may create flexibility for some trusts to move to a company or fixed unit trust, but income-tax relief does not necessarily remove state duty, legal, funding or commercial costs, so modelling and coordinated tax and legal advice should precede any transfer or change.

Start by mapping the entities and assets in your family or business group, identifying why each structure exists, reviewing trust deeds and beneficiary arrangements, documenting values and supporting information for 30 June 2027, and modelling how the CGT and proposed 30% minimum tax on discretionary trust-tax rules could affect future sales, distributions, retained profits and succession. Acting early does not mean restructuring immediately; it means preserving evidence and options, prioritising high-risk assets and structures, and obtaining tailored tax, legal and valuation advice before decisions become urgent, particularly as the 30% minimum tax on discretionary-trust measures remain proposed and may change through the parliamentary process.