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 wipe out $3 billion of charitable donations. The proposal targets trusts that rely on flexible distribution setups to lower their tax bills.
Lawmakers are also reviewing the relief scheme that differs across postcode, a system opponents called a lottery. The government has opened a public submission period for the tax plan. Stakeholders have a limited time to comment on the proposals before a final call is reached.