2026 Budget - New Effective Fixed Trust Structures
Previous plan was: Discretionary Trust with high capital growth shares -> bucket company (whilst wife 30c tax bracket and myself 47ct bracket still working full time for next ~10 years) ->distributions from company and sell down shares for early retirement. This strategy is dead now (if budget changes legalised).
A potential new option that could be worthwhile is:
Fixed trust (owns etfs high capital growth, still gets CGT inflation exemption) with 100% fixed ownership to holding company - > holding company holds and retains profits at 30%, invests in local property -> Discretionary trust owns shares in this company which then pays to wife and I when we retire. Yes still get 30% tax on trust income. Could also maybe pay out from holding company directly to us to get franked dividends but unsure how that would work.
First the current rules need to get approved. Also need to get official advice from our accountant on this issue.
Interested in peoples through on this potential new structure.