Pitcher Partners has made a detailed submission to the Senate Economics Committee on the proposed new minimum tax regime for discretionary trusts. Our focus is straightforward: if these reforms proceed, the rules need to work in practice and should not expose taxpayers to disproportionate consequences because of genuine administrative, documentation or timing errors.
A key concern is the proposed excluded election trust (EET) regime. Our submission identifies five practical changes we consider necessary to make the regime workable, including greater flexibility to correct genuine errors and more practical rules for making and revoking elections. We have also called for targeted transitional relief for existing property groups where tax losses could otherwise become stranded as businesses move to new structures.
We are continuing to advocate for rules that are implemented without creating unnecessary risk, complexity or unintended outcomes for taxpayers. We have urged the Government to undertake further targeted consultation before the legislation is finalised, so that the regime is workable from day one for affected businesses, trusts and their advisers.
You can read our submission below.
