Australia Tax Update: NSW Pledges Stamp Duty Shield for Trust Restructures

by Ariful | Oct 15, 2026 | UK Updates

TITLE: NSW Pledges Stamp Duty Shield for Trusts as Federal 30% Tax Remains a Proposal

What NSW has pledged for trust elections

New South Wales has pledged to protect businesses from state stamp duty if they use the proposed federal Excluded Election Trust (EET) arrangement. But the promise is conditional on Labor winning the NSW election in March 2027, and businesses in other states still face uncertainty.

The pledge follows the introduction of federal legislation for a proposed 30% minimum tax on certain discretionary trusts. The bills are not yet law, and the NSW commitment does not create an exemption that businesses can rely on today.

NSW Treasurer Daniel Mookhey says a re-elected Labor government would ensure businesses using the federal EET arrangement do not face relevant NSW transfer-duty liabilities. He said he had worked with Federal Treasurer Jim Chalmers to provide businesses with certainty as early as possible.

The announcement is significant for businesses in Sydney and across New South Wales that use discretionary trusts. However, the timing and wording matter: it is a political pledge ahead of the March 2027 election, not a current change to NSW duty rules.

The Australian Industry Group welcomed the commitment. Its chief executive, Innes Willox, said it could provide certainty for around 120,000 NSW businesses structured through trusts. The group also said it would continue to work with other states and territories to seek solutions for an estimated 370,000 trust-structured businesses elsewhere in Australia. These are figures cited by the industry group, not a government count. (Ai Group’s 15 October statement)

Business NSW also welcomed the announcement. Its chief executive, Daniel Hunter, pointed to the organisation’s latest business conditions survey, in which 35% of businesses identified reducing taxes and charges as their top priority for the next NSW government. (AAP News reports on the pledge)

Why federal tax relief may not settle state duty

Federal income-tax rules and state stamp-duty rules are separate. A federal rollover or election mechanism does not automatically remove a liability under state duty law. That distinction is at the heart of the current uncertainty.

The proposed federal arrangements include an EET pathway for eligible existing discretionary trusts. Under the proposal, a trust electing into this arrangement would nominate beneficiaries and set distribution proportions. The structure could allow the trust to remain in place, but it would come with requirements for how income is distributed.

A separate proposed rollover pathway may allow eligible trusts to transfer assets to another type of entity during a defined period, subject to conditions. A transfer of assets can raise state duty questions, especially where assets are located in a particular state. Federal tax relief should therefore not be treated as proof that a state duty charge will not apply.

NSW’s pledge is focused on providing relief for businesses using the EET arrangement. Do not assume it covers every trust restructure, asset transfer or change to a trust’s beneficiaries. The scope of any eventual protection will depend on the final federal rules and the NSW measures put in place.

The federal 30% trust tax is still a proposal

On 14 October 2026, the Federal Government introduced the Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and companion legislation into Federal Parliament. The proposal would introduce a 30% minimum effective tax rate on income distributed through certain discretionary trusts from 1 July 2028.

The bills have not passed and are not law. They face further parliamentary scrutiny, including a Senate review, and details could change. The ATO’s overview of the proposed minimum tax explains the proposal and its status. Check official updates before making decisions based on the proposed rules.

The NSW pledge also does not cancel or alter the proposed federal tax. It addresses one potential state-level cost for businesses using a particular federal pathway.

Businesses outside NSW still need clarity

As at 15 October 2026, the NSW pledge is a state-specific, election-conditional commitment. Queensland, Victoria and other jurisdictions have not confirmed matching exemptions, so businesses with trusts or relevant assets in those states should not assume the same treatment will apply.

The issue is attracting attention because state duty costs could affect the practical impact of a federal restructure. The ABC reports that business groups have raised concerns about the cost of establishing whether a restructure is necessary. The Housing Industry Association told the ABC that some businesses were being quoted $10,000 to $25,000 per trust to assess the changes. These figures are attributed to the organisation and reflect reported concerns, not a standard fee. (ABC News coverage)

For businesses operating across state borders, or with international operations, the picture can be more complex. Keep Australian trust records clear and separate from overseas tax, GST and sales-tax reporting. That helps ensure compliance work remains organised as rules develop.

What Australian trustees can do now

There is no need to make a rushed change based on a pledge that is not yet in force. Instead, organise the records you may need to support accurate reporting and any future compliance steps.

• Keep trust documents together. Store the current deed, amendments, financial statements, tax returns and distribution records in one accessible place.
• Maintain a clear record of beneficiaries and distributions. Reconcile the beneficiary information with trust records so reporting can be checked efficiently.
• Document the assets and entities involved. Keep a current list of trust assets and any connected entities. This will help identify relevant records if rules change.
• Track official developments. Monitor the bills’ progress in Federal Parliament, ATO guidance and any formal NSW announcement or legislative change.
• Avoid assuming a duty exemption applies. Until the promised NSW measures are formally introduced, treat the pledge as a commitment for the future, not a current exemption.
• Keep bookkeeping and tax records up to date. Accurate records make it easier to complete returns and filings on time, whichever rules ultimately apply.

For context on the federal proposal, read our earlier Australia update on the 30% minimum tax introduced in Parliament.

At Sterlinx Global, we support Australian business owners and trustees through a Global Tax Compliance Suite, including bookkeeping, tax calculations, filings and year-end accounts. You provide your business data; we help keep compliance work structured and up to date. Contact us to discuss your trust arrangements.

Australia Tax Update: 30% Minimum Tax on Discretionary Trusts Introduced in Parliament

by Ariful | Oct 14, 2026 | UK Updates

TITLE: Australia’s Proposed 30% Minimum Tax on Discretionary Trusts: What Trustees Should Know Before 1 July 2028

On 14 October 2026, the Australian Government introduced legislation to impose a 30% minimum effective tax rate on certain discretionary trusts from 1 July 2028. The Bills are not yet law, but Australian trustees and business owners can start organising their records and checking how the proposed rules could affect their reporting.

Know what Parliament is considering

Treasurer Jim Chalmers introduced two Bills in Federal Parliament: the Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and the companion Income Tax Rates Amendment (Minimum Tax on Discretionary Trusts) Bill 2026.

The proposals give effect to discretionary trust reforms announced in the 2026–27 Federal Budget. Treasury estimates they would raise approximately $4.3 billion in additional receipts over the forward estimates. The Budget’s tax reform summary also sets out a proposed three-year rollover relief period for eligible restructures.

The Bills have not passed Parliament. Their terms could change during the legislative process, so trustees should treat the details as proposals rather than current tax obligations.

Understand how the proposed 30% minimum works

From 1 July 2028, affected discretionary trusts would generally face a minimum effective tax rate of 30% on specified trust income. The tax would be imposed at trustee level.

Eligible non-corporate beneficiaries would generally be entitled to a non-refundable tax offset for their share of tax paid by the trustee. A non-refundable offset can reduce tax otherwise payable, but it cannot itself be paid out as a refund. Corporate beneficiaries would not be eligible for this offset.

This means it will be important to track trust income, beneficiary allocations, the tax paid by the trustee and the legal status of each beneficiary. Accurate records will help support the trust’s returns and the amounts reported by beneficiaries.

Check whether an exclusion may apply

The proposed rules do not apply in the same way to every trust or every category of income. The Bills and explanatory materials describe exclusions that include:

• Fixed trusts, deceased estates, complying superannuation entities, special disability trusts and employee share trusts.
• Certain primary production income and income relating to vulnerable minors.
• Certain income connected with charitable or not-for-profit beneficiaries.
• Some income subject to non-resident withholding tax.
• Qualifying income from genuine testamentary trusts.

These exclusions depend on detailed conditions. Do not assume that a trust or income item qualifies based only on its name or how it has been treated in past returns. Keep the trust deed, accounts, beneficiary records and supporting documents together so the relevant facts can be checked.

For businesses operating across borders, such as Australian digital businesses and international sellers, it is also important to keep Australian trust reporting distinct from overseas tax and indirect-tax records. A clear entity and transaction trail makes ongoing compliance easier to manage.

Keep testamentary trust records clear

The proposal provides an exclusion for qualifying income derived from assets originating from a deceased estate. However, the treatment is not unlimited.

Income from unrelated assets added to a testamentary trust after Budget night on 12 May 2026 may fall within the minimum-tax rules. For testamentary trusts established from 1 July 2028, the proposed exclusion would generally be restricted where the trust deed includes corporate beneficiaries.

Trustees should maintain clear records showing where trust assets came from and how income relates to those assets. That evidence can help distinguish qualifying estate-origin assets from assets introduced separately. The Explanatory Memorandum to the Bill sets out further detail on the proposed conditions.

Prepare for the two proposed pathways

The Bills outline two different pathways for eligible existing discretionary trusts. Trustees will need to assess the requirements carefully: the proposed rules do not allow a trust to use both the election and the transitional rollover relief.

Option 1: Review the proposed Excluded Election Trust election

Eligible existing discretionary trusts may be able to elect to become an Excluded Election Trust (EET). The trustee would nominate beneficiaries and set their shares of trust income and non-income earnings.

The election would require distributions to follow the nominated proportions. Departing from them could automatically revoke the election and expose the trustee to tax at the top marginal rate plus the Medicare levy for the relevant income year. This pathway therefore depends on reliable distribution controls and records.

Option 2: Check the transitional rollover window

Eligible restructures undertaken from 1 July 2027 to 30 June 2030 may qualify for rollover relief when assets are transferred from a discretionary trust to a company or fixed trust. Subject to the proposed eligibility rules, this could allow the transfer without immediate income-tax consequences.

The relief is voluntary and is not limited to trading businesses. Trustees considering this route should allow time to identify the assets and entities involved, check the proposed conditions and keep records of any transfer. Rollover relief does not remove the need to meet other applicable requirements.

Use this preparation checklist

There is time before the proposed minimum tax begins, but early organisation can reduce avoidable pressure later. Start with these practical steps:

1. Collect the trust documents. Keep the deed and amendments, financial statements, tax returns and distribution records in one accessible file.
2. Map beneficiaries and entities. Record which beneficiaries are individuals, companies or other entities, and reconcile the list with the trust deed.
3. Separate income categories. Maintain clear records for income that may be excluded, including qualifying primary production or testamentary-trust income.
4. Track distribution decisions. Record what was resolved, when it was resolved, who received each distribution and how the amounts align with the accounts.
5. Put key dates in your calendar. Note the proposed 1 July 2027 start of the rollover window and the proposed 1 July 2028 commencement of the minimum-tax rules.
6. Monitor the Bills. Check their progress and any revised legislation or ATO guidance before changing how the trust operates.

Business groups have raised concerns about the potential compliance costs, as reported by the Australian Financial Review on 14 October 2026. This is another reason to keep records orderly and avoid leaving a review of the trust’s reporting processes until the proposed commencement date is close.

At Sterlinx Global, we support end-to-e

UK Ltd Company Compliance Hub: HMRC’s New Data-Matching Checks in 2026, What Small Companies Must Do

by Ariful | Oct 13, 2026 | UK Updates

TITLE: How HMRC Uses Marketplace Data — And How to Keep Your Records Ready

HMRC’s access to third-party information is growing, making accurate, up-to-date records essential for your company. This guide explains how marketplace reporting and data-led compliance checks could affect you, and what to do now. Strong UK limited company accounting helps you reconcile sales, report VAT correctly and respond confidently if HMRC contacts you.

Understand what HMRC can compare

Under UK digital platform reporting rules, relevant platform operators collect and verify seller details and report information about sellers and transactions to HMRC. Information may also be exchanged with tax authorities in other jurisdictions under international arrangements. HMRC’s reporting guidance explains the rules and who they cover.

For online sellers, that information can provide a useful comparison with declared sales, VAT returns and company records. It does not mean every platform seller will automatically face an enquiry. But figures that cannot be explained, such as differences between platform activity, reported turnover and bank deposits, may lead HMRC to ask questions.

Be precise about which platforms are covered. Marketplaces that connect sellers with customers and handle or can determine payments may have reporting duties. A service that only processes payments does not automatically count as a reportable digital platform under these rules, although HMRC may receive information from third parties under other powers.

HMRC also uses data analytics and AI-supported tools to help identify compliance risks and select cases for further action. The precise matching methods and risk criteria are not public. The practical point is simple: keep your records ready to explain how each reported figure reconciles to your accounts.

Reconcile payouts before differences become problems

A marketplace payout is not the same as your sales turnover. It may already have refunds, fees, taxes or other deductions taken off. Record the underlying transactions, not just the amount reaching your bank.

Use this monthly checklist:

1. Reconcile every platform payout. Match gross sales, refunds, platform and payment fees, and net deposits to the platform statement and bank account. Doing this monthly makes missing transactions easier to spot.
2. Keep supporting documents. Retain platform statements, payout reports, VAT invoices, import records and customs paperwork. For corporation tax records, HMRC generally requires company records to be kept for six years from the end of the relevant accounting period. Check whether specific records have a different retention rule.
3. Monitor the VAT threshold using taxable turnover, not net payouts. The UK threshold is £90,000. Track taxable turnover over each rolling 12-month period; do not wait for your year end. If you exceed the threshold on the backward-looking test, you generally have 30 days from the end of that month to register. A separate rule applies if you expect to exceed the threshold in the next 30 days. Check when you must register for VAT.
4. Match VAT returns to transaction records. Make sure sales, refunds, marketplace-collected VAT and platform fees are recorded consistently. You must submit a return for every VAT period, even if there is no VAT to pay or reclaim. See HMRC’s guidance on sending a VAT Return.
5. Check cross-border treatment. Confirm the VAT rate and place of supply for each type of sale. If you sell into the EU, review the relevant local VAT and One Stop Shop (OSS) obligations. For US sales, check whether your activities create sales tax registration and filing requirements.
6. Review UK-held stock and fulfilment. If you are an overseas seller storing goods in the UK or fulfilling UK orders from UK stock, check whether you need UK VAT registration. The outcome depends on your business and transaction structure, including any marketplace VAT rules.
7. Keep director transactions documented. Maintain clear director loan account entries, dividend paperwork and evidence of payments. Unexplained movements can create questions when HMRC reviews a company’s records.
8. Respond to HMRC promptly. If you receive a nudge letter or compliance check letter, note the period and response deadline. Review the records, answer accurately and correct any errors, including through a disclosure where appropriate. Don’t ignore the letter; an unexplained delay can make the process harder.

For practical accounting services for small business UK, a regular reconciliation process is more useful than trying to rebuild the evidence at year end. A VAT automation tool can also help structure transaction data and identify discrepancies for review.

Worked example: why the £72,000 payout is not the turnover figure

Imagine a UK limited company selling through Amazon UK and eBay. Its monthly figures are excluding VAT:

The £72,000 payout is the cash left after £3,000 of refunds and £9,000 of fees. It does not show the full sales activity. The company should be able to reconcile the gross sales and deductions to platform reports, bank deposits and accounting entries.

For VAT: the £90,000 test uses taxable turnover over a rolling 12 months, not the net bank payout. Here, the £3,000 refunds need to be recorded and treated correctly; based on these figures, sales after refunds are £81,000 for the month, subject to the VAT treatment of the transactions. That one month does not settle the threshold question: add the company’s other taxable turnover across the relevant rolling period, and check the separate 30-day expectation test.

For corporation tax: a simplified accounting calculation is £81,000 sales after refunds, less £9,000 fees, £31,000 cost of goods, £12,000 fulfilment and shipping, and £6,000 other operating costs. That gives £23,000 profit before tax adjustments and any other income or expenses. Recording only the £72,000 payout as sales would obscure the separate income and expense figures and could distort the accounts.

For an enquiry file: keep the platform sales and refund reports, fee statements, payout breakdowns, bank statements, purchase invoices and shipping records together. This trail explains why reported sales, expenses and cash deposits differ, and makes it quicker to answer questions.

October compliance dates to keep in view

• 22 October: Electronic payment deadline for PAYE, National Insurance and CIS deductions for the month. Allow time for payment to reach HMRC.