18/06/2026
Breaking news: Testamentary Trusts are not dead.
Over the last few weeks we’ve had a lot of clients asking whether the proposed trust tax changes meant Testamentary Trusts were no longer worthwhile.
The Government has now confirmed that income from all types of Testamentary Trusts will be exempt from the proposed minimum tax rules, including future discretionary Testamentary Trusts.
For many families, that’s a significant development.
But it also highlights something important: The tax benefits were never the only reason to have a Testamentary Trust.
Even during the uncertainty, the reasons we recommending them remained the same:
âś” Protecting inheritance if a child divorces
âś” Protecting inheritance from creditors, bankruptcy and lawsuits
âś” Protecting young beneficiaries from receiving too much, too soon
âś” Protecting inheritance if a surviving spouse re-partners
âś” Protecting wealth for future generations
If you’ve been sitting on the fence because of the recent announcements, it may be time to revisit the conversation.
The Albanese Government is today announcing further implementation details for its tax reform package, following an intensive first round of post-Budget consultation.Our tax reforms are all about making it easier for Australians to buy their first home, cutting taxes for workers, and better aligning...
