Treasury has been examining options to increase taxes on distributions from trusts that are typically used by wealthy families, small business and farmers, which could deliver the Albanese government an immediate revenue boost of at least $3 billion a year.
A confidential report for the department prepared by tax academic Miranda Stewart raised concerns trusts were being exploited to minimise tax. Stewart was seconded to Treasury to lead an internal paper that proposed a minimum tax rate on trust distributions of around 25 per cent to 30 per cent, in line with the company tax rates for small and large companies, sources said.
