Key Details
The Australian Labor Party's proposed policy on trusts may lead to a new tax on discretionary trusts.
Wealthy families face a difficult choice: They could either keep assets in discretionary trusts and pay the new tax, or switch to corporate structures—losing asset protection and facing greater scrutiny.
The Osborn family, operators of the d'Arenberg winery in McLaren Vale, are actively considering their options. Fourth-generation winemaker Chester Osborn is currently consulting his accountant and expects a likely decision soon.
Background
The proposed tax targets discretionary trusts, which are commonly used for asset protection and tax planning.
For families like the Osborns, the stakes are high. The trust structure has long allowed them to distribute income flexibly among beneficiaries, minimising tax while safeguarding assets. Under the proposed changes, that flexibility could come at a significant cost.
As Chester Osborn weighs the advice of his accountant, the wine industry watches closely—wondering what this policy could mean for family-run businesses across Australia.