The 2026–27 Federal Budget announced a 30% minimum tax on discretionary trust income from 1 July 2028. Within weeks, the first marketing of template deed amendments and online conversion packages appeared. These products will multiply over the next twelve months, priced to be irresistible to clients who are frightened by the reform and want a fast answer.

Most should not be bought. The reason is straightforward: the legislation does not exist yet.

What hasn't happened

The Government has announced the measure. It hasn't legislated it. Treasury hasn't released an exposure draft. The consultation period hasn't run. A Bill hasn't passed. The States haven't said whether they will offer matching duty relief. The eventual definition of "fixed trust" for this measure is unknown, and Treasury is likely to tighten it beyond Schedule 2F precisely to defeat obvious workarounds.

An off-the-shelf trust amendment, executed before the exposure draft lands, is a guess about a test that has not yet been written.

The double-cost trap

The worst outcome looks like this. A client pays a few thousand dollars for a template amendment. It is executed. The change in beneficial entitlements triggers state stamp duty on the full unencumbered value of any land — often hundreds of thousands of dollars, irrecoverable.

Twelve to twenty-four months later, the legislation arrives. The legislated test is tighter than Schedule 2F. The template amendment doesn't satisfy it. The trust is inside the 30% measure anyway. State duty paid. Federal tax not avoided. The client now needs further deed work, or a full restructure.

Marketing language to be wary of

  • "Beat the Budget" / "Limited time" — urgency built on fear, not on knowledge of the law
  • "ATO-compliant" / "Pre-approved template" — meaningless when no law or ATO guidance yet exists
  • "Guaranteed to satisfy the new rules" — impossible, because the rules haven't been written

The right sequence

Diagnostic now — review the deed, map exposure, model state duty, identify the assets and beneficiaries that will drive the decision. When the exposure draft is released, refine against the actual proposed test. After legislation passes, execute within the rollover window (1 July 2027 to 30 June 2030) with confidence rather than a guess. There is no benefit to executing a deed amendment in 2026 against an unknown test. There is significant downside to doing so.

General information only, current at the date of publication. Not legal or tax advice.