The Treasury has drafted a rule that would impose a 30 per cent tax on distributions from discretionary trusts. Church groups say this could cut up to $3 billion of charitable donations. The proposal focuses on arrangements that rely on flexible distribution setups to reduce their tax bills.
Lawmakers are examining the relief scheme that varies by postcode, a system critics have called a random process. The government has opened a public consultation window for the tax plan. Stakeholders have a short window to respond to the proposals before a final call is reached.