Your property and your family trust are both facing big tax changes.
The CGT discount changes from 1 July 2027, and a minimum tax on discretionary trusts has been proposed from 1 July 2028. I help investors and families understand what it means for them and plan ahead.
Property: what changes and when
These changes became law in June 2026. Some details are still to come in further legislation and ATO guidance.
Negative gearing cut-off
Established homes bought before 7:30pm AEST on Budget night keep negative gearing. Those bought after lose it from 1 July 2027. New builds keep it.
CGT discount replaced
For individuals, trusts and partnerships, growth after this date is taxed on the gain above inflation, with a 30% minimum rate. Growth before it keeps the 50% discount.
New borrowing banned
Super funds can no longer take out new limited recourse loans to buy residential property. Existing loans aren't affected.
Family trusts: what every trustee should know
Many families hold their investments in a discretionary (family) trust. The rules are tightening, so it's a good time to check your trust is still working for you.
Resolutions must be made by 30 June
The trustee has to decide who receives the income by 30 June, in line with the trust deed. Miss it, and default beneficiaries may be taxed, or the trustee may pay tax at the top rate.
Proposed 30% minimum tax from 2028
The government has proposed a 30% minimum tax on discretionary trust income from 1 July 2028. It isn't law yet. Distributions to companies could be hit hardest. Some trusts, like special disability trusts and many testamentary trusts, would be excluded.
A window to restructure
Alongside that proposal, the government plans tax relief for moving assets out of discretionary trusts into companies or fixed trusts over a three-year window. Stamp duty is a separate state cost.
Capital gains inside trusts
Trusts lose the 50% CGT discount for growth after 1 July 2027, the same as individuals. Selling assets held in a trust needs fresh planning.
Unpaid distributions to companies
A June 2026 High Court decision changed how money owed by a trust to a company beneficiary is treated. The government has said it will legislate to restore the ATO's approach.
Beneficiaries and records
Distributing outside the family group under a family trust election, missing beneficiary TFNs and franking credit holding rules are common ATO findings.
How I help
2027 CGT & Property Review
Every property reviewed, grandfathering status confirmed, and sell or hold scenarios in a written report.
Trust health check
Your deed, beneficiaries, elections, loans and distribution history reviewed, with a clear list of what to fix.
Family group tax
Individual, trust and company returns, 30 June distribution planning and minutes, done together each year.
Restructure review
Whether your trust still suits you after 2028, and the tax and duty costs of the alternatives.
Free: the 2027 CGT checklist
Seven questions to answer about each property before 1 July 2027, including properties held in a trust.
Common questions
Is a family trust still worth having?
For many families, yes, for asset protection and estate planning as well as tax. But if the 30% minimum tax goes ahead, the tax benefit shrinks for some. It's worth reviewing before 1 July 2028, when the restructure window is expected to open.
What does the trustee need to do before 30 June?
Work out the trust's income under the deed, decide which beneficiaries receive it, and record that decision in a valid resolution by 30 June. I prepare the figures and the minutes with you each year.
Is my investment property affected?
If you bought it before 7:30pm AEST on 12 May 2026, it keeps negative gearing. The CGT change applies to growth after 1 July 2027 on all properties, including those held in a trust.
Should I sell before 1 July 2027?
Not necessarily. Growth up to that date keeps the 50% discount whether you sell or not. Whether to sell depends on your plans, costs and expected growth, which is what a review works through.
Talk it through before you decide
A free 15-minute call about your properties, trust and plans, followed by a written quote.