Will Hamilton

Capital gains within super remain taxed at concessional rates.

First of all, I think that this increases the attraction of self-managed super funds without a doubt.

No.

Well, discretionary trusts have been used by a lot of small businesses up and down the high streets of Australia.

And the mum and dad that ran this business didn't take a salary.

They took distributions through the trust.

So I think it's concerned a lot of people because of the way they've historically set up their businesses.

And again, we've talked about this quite a number of times that

People establish things based on the rules that existed at the time.

Now, discretionary family trusts, doesn't matter if you've done this as a wealth creation vehicle or it's to operate a business, they're going to be subject to a minimum tax rate of 30% on distributions.

So this significantly reduces the benefit of income distribution to lower taxed family members.

That's another thing as well, where people have used this once a child reaches 18 for income splitting.

at lower rates, well, now you're going to have a minimum tax rate of 30%.

I think the big thing, this does affect professionals.

It does affect business owners, as I just mentioned.

And these business owners don't need to be necessarily big businesses.

They can be these mum and dad businesses that, you know, up and down the high streets, as I mentioned, and families who built structures around legitimate income splitting.

So I think there's three areas that have been affected.

Trust such structures are not going to be obsolete, but their role and effectiveness, it's changed materially.

Is that what you're saying?