In this episode of Under the Hood, Accountants Daily journalist Carlos Tse is joined by Dianne Hanna, an accountant with more than 25 years of experience, and Lee-Ann Hayes, head of education at Accurium and TaxBanter, as they go back in time on the discretionary trust, how the government's proposals will impact the structure, and its survival post-legislation.

Carlos, Dianne, and Lee explore the evolving role of discretionary trusts in Australia's tax and business landscape, examining how proposed reforms could reshape their use and the decisions accountants will need to make for their clients.

They discuss the three options available to trustees if the proposed reforms become law: accepting the minimum tax, restructuring into another entity, or making an election to lock in distributions to beneficiaries in fixed proportions.

Dianne and Lee also examine why discretionary trusts may remain valuable beyond their tax advantages, particularly for asset protection, succession planning, and commercial risk management. They explore the complexities of restructuring, including potential stamp duty implications, and the growing pressure on accountants to keep pace with an increasingly complex and rapidly changing regulatory environment.

Tune in to hear more about:

• How discretionary trusts have evolved through key court cases and changes in tax administration.
• The proposed 30 per cent minimum tax and the three options available to trustees.
• Why discretionary trusts may remain relevant for asset protection, succession planning and risk management.
• How accountants can assess whether to retain, restructure or make an election for existing trust arrangements.
• Why the proposed reforms may not affect all taxpayers in the same way.
• The potential stamp duty and legal implications of restructuring discretionary trusts.
• Where the reforms could create new opportunities for accountants and their clients.
• How the pace and complexity of legislative change are affecting the accounting profession.
• Why education, professional networks, and collaboration are becoming increasingly important for practitioners.

In this episode of Under the Hood, Accountants Daily journalist Carlos Tse is joined by Matt Nolan, economist and senior research manager at the e61 Institute, to explore why GST reform is back on the economic agenda.

Carlos and Matt discuss the economic case for GST reform, including how Australia's ageing population, rising fiscal pressures, and inflation have renewed interest in rethinking the balance between consumption and income taxes.

They explore why the GST raises concerns about household budgets, fairness, and the potential impact on lower-income taxpayers.

Matt also examines how a broader GST base, combined with changes to income tax rates and targeted support for lower-income households, could improve the efficiency, simplicity, and consistency of Australia's tax system.

Tune in to hear more about:

• Why economists are continuing to advocate for GST reform.
• The relationship between GST and income tax.
• Why GST reform remains controversial.
• Why combining the tax reform and spending discussions can complicate the public debate.
• The potential benefits of broadening the GST base and reducing income tax rates.
• What Australia can learn from New Zealand's approach to its tax policy processes.
• How shifting the tax mix could reduce the distortionary effects of inflation.
• Why clearer communication and a focused, evidence-based case for reform are essential to building public support.

In this episode of Under the Hood, Accountants Daily journalist Carlos Tse is joined by Matthew Burgess, co-founder and director at View Legal, to unpack the government's proposed 30 per cent minimum tax on discretionary trusts and why comprehensive reform of Australia's trust taxation system is needed.

Carlos and Matthew discuss the proposed minimum tax on discretionary trusts and the uncertainty surrounding the government's approach to reform.

They explore the growing complexity of Australia's trust taxation system, including the risks associated with family trust distribution tax (FTDT), family trust elections, and interposed entity elections.

Matthew argues that a more effective approach would involve a comprehensive, collaborative review of trust taxation, with input from key stakeholders and a focus on addressing specific problems rather than introducing further complexity.

Tune in to hear more about:

• Uncertainty surrounding the government's proposed 30 per cent minimum tax on discretionary trusts.
• Why successive layers of tax reform are adding complexity to an already challenging system.
• The risks associated with FTDT, family trust elections, and interposed entity elections.
• How the proposed changes could affect business decisions, estate planning, and intergenerational wealth transfers.
• The growing compliance burden on accountants and the challenges of delivering the additional advice required.
• Why a collaborative, bipartisan approach to comprehensive trust tax reform could deliver better outcomes.

Editor's note: This episode was recorded prior to the government's latest tranche of discretionary trust reforms on 14 October.