After the 2026 Budget proposed taxing testamentary trusts, the Government has announced they will be exempt from the new 30% minimum trust tax — provided they are established for “genuine testamentary purposes.” Here's what the change means for your estate plan, and the catch worth understanding.

Estate planning rarely makes headlines, but a wave of tax change makes 2026 a good year to revisit how your will is structured. Some changes are already law: the next round of personal income tax cuts and the new Division 296 tax on large superannuation balances both take effect from 1 July 2026. Others are proposed but not yet law: the 12 May 2026 Federal Budget announced a major overhaul of capital gains tax and a new minimum tax on discretionary trusts. Together they chang