The Treasury has drafted a rule that would set a minimum 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 lower their tax bills.
Lawmakers are examining the relief scheme that varies by postcode, a system opponents called a lottery. The government has launched a public consultation window for the tax plan. Stakeholders have a limited time to comment on the proposals before a final call is reached.