“THE HIDDEN ‘INHERITANCE TAX’ B0MBSHELL…” Hidden inside Albo’s Budget is shσcking measure no one saw coming — as cσntrσversial move that could ɦit families when they pass wealth to their children… raising seriσus questions about what’s REALLY going on behind the numbers…
The Albanese government has quietly introduced a new tax hit on inherited family wealth as part of its sweeping Budget changes.
Alongside reforms to negative gearing and capital gains tax, the government will impose a minimum 30 per cent tax rate on certain family trusts commonly used in wills and estate planning.
These trusts are created through a will and only come into effect when a person dies. They are widely used because they allow families to distribute inherited money and assets in a tax-effective way, while also helping protect wealth from divorce, bankruptcy and legal disputes.
They also give trustees the flexibility to change how income and assets are divided between beneficiaries over time depending on their financial circumstances.
But from July 1, 2028, income earned through these trusts will face a minimum 30 per cent tax rate under the new rules.
Testamentary Fixed Trusts will be excluded from the minimum tax, preserving the trusts’ concessional tax treatment.
Unlike Testamentary Discretionary Trusts, which allow trustees to change how income and assets are distributed, Testamentary Fixed Trusts lock in each beneficiary’s entitlement under the terms of the will.
Prime Minister Anthony Albanese during Question Time on Thursday, as the government faces criticism over new Budget measures that will impose a minimum 30 per cent tax on income generated through certain inheritance trusts from July 2028
Estate planning expert Rachel Rofe told The Australian: ‘We had no warning of this, and I had hoped there might be a carve-out for this area as there had been the last time it was mentioned in the Shorten election campaign of 2016 – but it’s clearly not there.’
‘The government can say that technically we are not taxing assets in estates, but it is a tax to be introduced on income generated on those assets. This is a death duty by any other name,’ Ms Rofe said.
Many had believed the budget announcements meant an exclusion would apply to all trusts relating to wills and estates.
In a Thursday interview with Albanese, Today Show host Sarah Abo confronted the Prime Minister over breaking a promise on negative gearing – and whether that meant he could also break a promise on introducing a death tax.
‘Why have you chosen to lie to Australians instead of letting them vote on it?’ she asked, before asking whether his government planned to introduce a death tax.
Albanese said he would not introduce the tax. But Abo continued, asking: ‘But things change, don’t they, as you and the Treasurer have repeatedly said.’
‘No. These are the positions that we’re put in, Sarah,’ the Prime Minister replied.
Source: https://www.dailymail.com/news/article-15819289/Death-tax-Albanese-budget.html
“WHY DID YOU LIE?!” TV Host Sarah Abo Destroys PM Albanese On Live TV!
Today Show host Sarah Abo has questioned whether Anthony Albanese can be trusted after his Federal Budget broke a series of key election promises.
Treasurer Jim Chalmers announced on Tuesday that negative gearing will be wound back to only include new builds, breaking Labor’s repeated election promise to avoid changes to tax settings that allow landlords to reduce their tax bills.
Abo asked the Prime Minister why he hadn’t taken the changes to an election.
‘Why have you chosen to lie to Australians instead of letting them vote on it?’ she asked, before asking whether his government planned to introduce a death tax.
A death tax is applied to the total value of a deceased person’s estate, which includes property, money and inheritance, before it’s passed on to heirs.
Albanese said he would not introduce the tax. But Abo continued, asking: ‘But things change, don’t they, as you and the Treasurer have repeatedly said.’
‘No. These are the positions that we’re put in, Sarah,’ the prime minister replied.
Abo hit back: ‘But you’ve also said that things change, so how can we believe you?’
Today Show host Sarah Abo (pictured) questioned whether Australians can believe Anthony Albanese when he says he won’t introduce a death tax after the Federal Budget shock
Albanese insisted the Labor government would not introduce a death tax
‘We have put forward these changes. We’re being upfront about that,’ Albanese said.
Negative gearing allows owners of investment properties to claim back their costs such as interest on loans, maintenance and rates.
Under Labor’s changes, only those with existing negatively geared properties or who build new homes on vacant land will be entitled to claim their expenses.
When asked by Sky News on Wednesday if he had negatively geared any of his properties, Albanese said: ‘Oh, look, I have in the past, absolutely.’
‘But all my things are declared in the normal way. I’m subject to all of that, but in a transparent way, like everyone else.’
Albanese did not clarify whether his current investment property was negatively geared, but he did recently declare rental income.
The prime minister currently owns a $4.3million clifftop home in Copacabana, on the NSW Central Coast, and a property in Marrickville, in Sydney’s inner-west.
He recently sold an apartment in Canberra and a home in Dulwich Hill in Sydney.
Albanese currently owns a $4.3million clifftop home (above) in Copacabana
At least 15 cabinet ministers own investment properties and 10 have declared rental income, meaning they will remain eligible for negative gearing.
Albanese was asked whether it was fair that those parliamentarians would continue to receive the concession while future property investors were locked out.
‘They operate in exactly the same way. In what way is there a differentiation?’ he said.
Shadow treasurer Tim Wilson lashed out at the major tax changes, after Labor promised not to change CGT and negative gearing at last year’s federal election.
‘The Treasurer has been caught out, basically lying to the Australian community with the Prime Minister,’ Wilson told Sky News.
‘Australians are angry, and more importantly, there’s been a clear record of broken trust and it’s not even going to deliver the claimed benefits that they say.’
WHAT’S IN THE BUDGET?
* An overhaul of tax breaks for property investors will be framed as a way of giving younger Australians a leg up in the housing market
* Details will be revealed on Tuesday night, but the government is widely expected to pare back negative gearing and capital gains tax concessions, along with changes to the tax treatment of trusts
* The budget will show the nation’s finances are $44.9 billion better off than forecast in December 2025, the government says
* There will also be an increase in spending on Australia’s military to the tune of $53 billion over the next decade, to deal with intensifying security risks
* The budget will account for a 26-cent-a-litre cut to the price of petrol and diesel, along with a cut to the heavy vehicle road user charge, which are already in place and scheduled to expire on June 30. There is a chance the government will extend these measures
* There has been speculation the government could give Australians a one-off payment of between $200 and $300, but no details have been confirmed
* To reduce pressure on the budget, the government is stripping out about $15 billion a year from the National Disability Insurance Scheme, slashing eligibility and requiring the states to do more to support people with some disabilities
* Australians over 65 will no longer pay discounted rebates for private health insurance, bringing it into line with other age groups. Older Australians will have to pay more than $200 a year extra for their cover
* Tax breaks for electric vehicles will also be phased out. Incentives allowing employers to avoid fringe benefits tax on EVs under $91,000 through a novated lease will be changed to a 25 per cent discount
* The long-running inland rail freight project will be cut, but the government is pouring $3.8 billion into Melbourne’s Suburban Rail Loop and $50 million into improving the Sydney-Canberra train line