Assistant Treasurer Daniel Mulino poses with Governor-General Sam Mostyn during a swearing-in ceremony at Government House in Canberra, Australia, on May 13, 2025. Hilary Wardhaugh/Getty Images
Assistant Treasurer Daniel Mulino has reaffirmed the Labor government’s commitment to imposing a 30 percent minimum tax on discretionary trusts.
The Labor government is set to introduce legislation on the taxation plan for discretionary trusts in coming days.
Mulino made it clear that the proposed 30 pecent tax was locked in and that the government would not change its position.
“It’s about trying to better align the taxes that people pay when they earn income through trusts versus when they earn income from working, from providing their labour.”
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While the measure is expected to take effect on July 1, 2028, it has yet to become law and must be introduced in Parliament.
Meanwhile, the government has already agreed to changes that would exempt inherited family estates, disability trusts and farms.
Assistant Treasurer Calls for Support from Opposition, the Greens
Mulino argued that the government’s proposed changes to discretionary trusts had been advocated by experts for decades, with major reviews dating back to the 1970s.
He also urged the Opposition and the Greens to support the measure.
“I would say to the Opposition and to the Greens. They should engage with these much needed and fair reforms on good faith. And these are reforms that are needed for our tax system and for the fairness of our economy,” Mulino said.
When asked whether he would make any further changes to the original plan, Mulino said some adjustments had already been made.
“I’ll let the bill be presented before getting into those kinds of details, but what I would say is that there have been some adjustments already made,” he added.
“For example, discretionary testamentary trusts. We’ve been working with stakeholders throughout this process and that’s appropriate. And that’s very normal with major tax reforms.”
Shadow Treasurer Calls for Tax to be Cancelled
However, Shadow Treasurer Tim Wilson called for Labor to abandon the tax on discretionary trusts.
“They really need to abandon it, otherwise they’re going to cause further economic chaos.”
Wilson also pointed out the Labor government had not taken the tax changes to the last election.
“In fact, they said 50 times over they wouldn’t make these changes,” he added.
