The Australian government is reportedly considering significant tax reforms aimed at addressing wealth inequality. One major change could be the abolition of the 50% capital gains tax (CGT) discount, which has allowed high-income earners to minimize their tax burdens significantly. Additionally, a 30% minimum tax rate on discretionary family trusts is under discussion, targeting the tax advantages that primarily benefit the wealthy. Discretionary family trusts enable individuals to split income among beneficiaries, allowing them to exploit various tax thresholds, resulting in substantial savings. This practice has grown dramatically, with the number of such trusts increasing from 328,725 in 1990-91 to over 1 million in 2022-23. Trust income now accounts for around $600 billion, which is nearly a quarter of Australia’s GDP. The richest Australians disproportionately benefit from this system, with 63% of trust income going to the top 10%. If implemented, these reforms could bring more equity to the tax system, ensuring that the wealthiest contribute a fairer share.