‘One Year Would Be Lovely but Please Can We Have Some More?’: Accountants Ask the Senate to Slow the Trust Tax

The country’s three major accounting bodies have told a Senate committee that the government’s tax reform timetable is too tight, backing a delay in implementation and warning that even an extra year may not be enough.

The bills under scrutiny

The Senate Economics Legislation Committee held a public hearing on the Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and the Income Tax Rates Amendment (Minimum Tax on Discretionary Trusts) Bill 2026, Accountants Daily reported on 6 November. Chartered Accountants Australia and New Zealand (CA ANZ), the Institute of Public Accountants (IPA) and CPA Australia were asked for their views on the proposals, including a minimum 30% tax on discretionary trusts and changes to capital gains tax.

Liberal Senator Kerrynne Liddle asked whether the bodies would support a one-year delay. All three supported a delay, but indicated that one year would not be sufficient.

What the profession said

IPA senior tax adviser Tony Greco said the cumulative effect of the changes, particularly to CGT, needed to be considered. “I think we need certainty,” he said. “What we’ve got here with all these legislative determinations yet to be determined, we have so much uncertainty in a complex area of the law.”

CA ANZ’s Australian leader for tax, superannuation and financial services, Susan Franks, said passing the legislation was only the first step, after which the ATO must issue guidance and advisers must apply it to clients. “It’s the holistic cumulative effect of the legislation and the use of resources and the uncertainty that we need to deal with. One year would be lovely but please can we have some more?” she said.

CPA Australia tax policy lead Jenny Wong noted that the CGT and negative gearing changes take effect on 1 July 2027, yet many of the rules have not been released. “There will be a mad rush and capacity issues will arise for our members. I think a delay would be helpful,” she said.

The trust election problem

In its written submission, the IPA raised concerns about the proposed “excluded election trust” (EET) election, arguing that a regime locking trustees into fixed beneficiaries and percentages could limit their ability to respond to illness, hardship, disability or family breakdown during the year. “The proposed design of the EET election therefore risks undermining the proper administration of discretionary trusts,” the submission said.

Why it matters

Discretionary trusts are widely used by family businesses and investors to hold assets and distribute income. Until the bills pass and the ATO publishes guidance, the final shape of the rules remains uncertain. Business owners with trust structures may want to keep track of the committee’s report and discuss the possible effects with their accountant, rather than restructuring in advance of final laws.

Source: Accountants Daily, “‘Please can we have some more?’: Calls for tax reform deadline extension” (6 November 2026). This article is general information only and is not tax advice.