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Navigating the New Top Tax Rate for Trusts

  Dec 07, 2023

Navigating the New Top Tax Rate for Trusts

Helping our clients to minimise their tax bill is an important part of our work. After all, no-one likes paying more tax than they have to! Proposed changes to the trust tax rate (expected to be implemented in the next financial year) could see it raised to 39% from 33%, in line with the highest personal taxation rate. And while things may change post-election, we make plans according to the information as it stands.

The higher trust tax rate is intended to ensure that trusts are not used as a tool to circumvent the top personal tax rate currently 39%. And unlike the personal rate, this one applies from the very first dollar earned. 

Do you need to make changes?

Before this proposed change comes into effect, anyone involved in a trust should review their trust to consider tax planning opportunities.

You may also want to consider the administrative costs of a trust and the recent trust disclosure changes and whether it is still applicable for your requirements. 

We can help you review and restructure your trust

Let us help you make smarter, better business decisions taking these proposed rules into account. This might mean minimising retained earnings by declaring dividends or planning for provisional tax to protect your cashflow. Book a meeting with the Malloch McClean team; together we’ll make sure we get it right and save you money, while still protecting your assets.

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