James Kirby

We'll quickly deal with trusts.

We won't go too far into the thickets of this, folks, but Liam mentioned at the start

I think one of the most clever aspects of this budget was they put in a minimum 30% CGT rate.

And similarly on family trusts, which people have been threatening, politicians have been threatening for many years to do something about, that is to reform.

They've put in a minimum of 30% as well.

To our surprise, and you probably noticed the Australian developed the story first, and it became quite a sensation in the last few days.

It was unclear originally in the budget papers.

That is, it would seem, a quick reading of the budget papers suggested or inferred perhaps to some that all trusts, testamentary trusts, were excluded in the way that charities, etc., are excluded.

That's not the case.

There's two types of testamentary trusts.

There's a fixed trust, which almost nobody uses, and there's a testamentary discretionary trust, and that will be included in the new family trust clamp down.

What does that mean, Liam?

What do you think people should do in that situation?

Sorry, Ian, I just, we need to make it really clear.

The idea of a testamentary discretionary trust, just to separate it from the fixed ones, which are left alone.

Which made it very attractive, of course.

Yeah.

Yeah.

And that is, that would seem to be canned basically.

Yeah.