The Australian federal budget and what people's mindset should be around it

One of the biggest talking points from the Federal Budget has been the proposed changes to family trusts.

For many Australian families, family trusts have been an effective way to hold assets and distribute income tax-effectively between beneficiaries.

The proposed changes could significantly alter how these structures are used in the future, particularly for families who currently benefit from distributing income to lower income earners.

That said, it’s important not to panic.

At this stage, nothing has been legislated, and if the changes do proceed, there are proposed transition periods that may allow families time to review and adjust their structures.

The reality is that every family situation is different. What may be a concern for one family may have little to no impact on another.

For now, the best approach is to stay informed, avoid making rushed decisions and seek advice if these changes could affect your family’s financial structure.

General advice only.

Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).

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