SMSF Association Submission – Minimum tax on discretionary trusts – exposure draft legislation

The SMSF Association welcomes the opportunity to provide this submission in response to the Government’s proposed minimum tax on discretionary trusts. Our submission is limited to those
elements which may impact the investments and trust structures used by superannuation fund trustees to invest members funds. Such investments may include MITS, AMITs, widely held trusts, as well as closely held fixed and unit trusts. Other legislative provisions require the use of bare trusts.

It is therefore vitally important that the drafting of these provisions is clear, practicable, and stands on its own. Supplementation by Ministerial legislative instruments should limited to addressing anomalies where a timely remedy is needed. The drafting of the core definitional elements must be precise and not be so broad as to cause uncertainty or policy creep.