The government plans to close a tax advantage many workers can't access by imposing a minimum 30 per cent tax on the net income of 840,000 trusts that allow wealthy investors and family businesses to spread income across their family or obscure asset ownership in bankruptcy and family-court proceedings. Australian trusts have combined assets of $2.9 trillion with annual income of $600 billion.

The changes are projected to raise $4.47 billion in 2029/30 after they begin on 1 July 2028. Treasury data shows trusts are overwhelmingly used by Australia's top 10 per cent of income earners who receive about two-thirds of distributions, while the bottom 10 per cent receive one per cent.