Government considers backflip on trust tax changes

The Albanese government faces backlash over proposed trust tax changes, with reports suggesting potential reversals on discretionary testamentary trusts. Health Minister Mark Butler clarifies that existing trusts established before the budget will be grandfathered and remain unchanged, while new discretionary testamentary trusts will face minimum taxation from July 2027. The budget changes aim to create more equitable tax treatment between wage earners and investment income, but have drawn criticism from small business owners and opposition leaders who argue the measures amount to new taxes not promised before the election.See omnystudio.com/listener for privacy information.