The Government is introducing changes to the taxation of discretionary trusts, with a 30 per cent minimum tax being applied from 1 July 2028.
In response to the consultation paper, GrainGrowers:
- Supports the primary production income exemption and this setting being maintained.
- Requests that The Treasury:
- Considers non-traditional primary production income generated by farm trusts, noting that farm business income streams may be diversified for some operations that have expanded to non-traditional primary production activities.
- Ensures that primary production exemptions continue to operate as intended for the benefit of the agriculture sector.
- Seeks confirmation that exempt primary production income will retain its character as it flows via distributions, through subsequent trust, partnership, company and individual tax returns.