Special Report: 39% Trustee Tax Rate

The trustee tax rate has been increased from 33% to 39% for the 2024–25 and later income years. This Special Report outlines new rules for trusts:

• Measures to mitigate over-taxation, including:

• retaining the 33% rate where trustee income for the income year does not exceed $10,000 (after deductible expenses);
• targeted rules for deceased estates and trusts settled for disabled people; and
• exclusions for energy consumer trusts and legacy superannuation funds.

• A measure to buttress the 39% trustee tax rate by taxing beneficiary income derived by certain close companies at the 39% trustee tax rate.