From 1 July 2027, people generally cannot claim a capital gains tax (CGT) discount on assets sold after this date.

Investors in new residential dwellings or affordable housing can still use the 50 per cent CGT discount for gains made after 1 July 2027.

From 1 July 2027, owners of residential dwellings can no longer use negative gearing to deduct rental losses from other income, such as salary and wages. This does not apply to 'new residential dwellings' that meet specific criteria, such as those built after 12 May 2026.

People who use schemes to falsely claim a property is a 'new residential dwelling' to get tax benefits will be banned from using the CGT discount or negative gearing for that property.

From 1 July 2028, trustees of most discretionary trusts must pay a minimum tax of 30 per cent on the trust's net income. This acts as a 'top-up' if the trustee is already paying a lower rate of tax.

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

Certain trusts, such as genuine testamentary trusts, deceased estates, special disability trusts, and charitable trusts, are exempt from the 30 per cent minimum tax.

Trustees of discretionary trusts can avoid the 30 per cent minimum tax by making an 'Excluded Election Trust' (EET) election and following a strict nomination of how income is distributed to beneficiaries.

If a trustee voluntarily or automatically loses their EET status, they must pay tax at the top marginal rate plus the Medicare levy on the trust's net income for that year. In future years, the 30 per cent minimum tax will apply.

Beneficiaries of a trust that loses its EET status are treated as if they were never entitled to the trust's income or capital gains for that year.

The Commissioner of Taxation can cancel a testamentary trust's minimum tax exemption if the Commissioner is satisfied the trust was used in a scheme to avoid paying the tax.

Trustees of discretionary trusts and people involved in certain asset restructures can be fined or jailed if they fail to notify the Commissioner of Taxation about required tax events.

The Treasurer can set rules to determine if a company has 'material discretionary elements', which affects whether that company can be a beneficiary in an EET nomination.