Trustees of discretionary trusts must pay a minimum tax of 30 per cent on the trust's net income starting 1 July 2028. This acts as a top-up if the trustee pays no tax or pays tax at a rate lower than 30 per cent.

Genuine testamentary trusts, deceased estates, and special disability trusts are exempt from the 30 per cent minimum tax on capital gains. Certain income for minors is also exempt.

The Commissioner of Taxation can deny the minimum tax exemption for testamentary trusts if they believe the trust was used in a scheme to avoid paying the minimum tax.

Non-corporate beneficiaries of discretionary trusts can use a non-refundable offset to reduce their own income tax by the amount of minimum tax the trustee already paid. Corporate beneficiaries cannot use this offset.

Trustees of discretionary trusts who use a specific tax election (EET) face heavy penalties if they revoke it or fail to follow the rules. The trustee may have to pay tax at the top marginal rate plus the Medicare levy for that year, and the trust will be subject to the 30 per cent minimum tax in the future.

Trustees who fail to tell the Commissioner of Taxation about a revoked tax election or a failed asset roll-over can be fined or charged with an offence.

Starting 1 July 2027, most people cannot use the 50 per cent capital gains tax (CGT) discount for gains occurring after that date. Instead, a cost base indexation method will apply.

Australian residents can still use the CGT discount after 1 July 2027 for gains on affordable housing or new residential dwellings. For people who move overseas, this discount is pro-rated based on how long they lived in Australia.

From 1 July 2027, owners generally cannot use negative gearing to deduct rental losses from other income like salary. However, 'new residential dwellings'--such as those built after 12 May 2026--are exempt from this rule and can still be negatively geared.

Owners of dwellings similar to hotels, motels, hostels, or boarding houses are also exempt from negative gearing restrictions.

The Commissioner of Taxation can stop a property from being treated as a 'new residential dwelling' if they find the owner entered into a scheme primarily to get a tax benefit.

All taxpayers must now apply capital losses in a specific order: first against deferred gains, then deferred residential gains, then general capital gains, and finally residential capital gains.

Trustees of trusts and members of managed investment trusts can choose to use cost base indexation instead of the CGT discount for new residential dwellings. If a trustee makes this choice, the beneficiaries are bound by it.