Australia: Trusts

The 2026 Federal Budget has introduced significant changes to how discretionary trusts, including testamentary discretionary trusts (TDTs), will be taxed. If passed, these changes have far-reaching implications for estate planning strategies that many families use to protect and pass on wealth.

The quote sometimes attributed to Vladimir Lenin that “there are decades where nothing happens; and there are weeks where decades happen” seems particularly appropriate in relation to the 2026 Federal Budget.

In this episode of It Depends, associate Sacha Robinson explains how to choose the right jurisdiction for your trust.

ASIC has provided Australian financial services and credit licensees additional targeted relief under the reportable situations regime in response to feedback from industry.

Transcript & link to video - from 1/8/25, Qld trusts may vest after 125 years, but deed terms & legal steps determine if extension is possible.

NSW Court of Appeal confirms good faith is essential for statutory derivative actions under s237(2)(b) of the Corporations Act 2001.

There are several considerations for trustees when determining the distribution of income & capital each financial year.

Discusses the CGT and Stamp Duty consequences of trusts vesting in Victoria.

A PAF is a private philanthropic vehicle established and operated by a high net worth individual or family.