Charitable Donations Could Drop Under Labor’s CGT Overhaul: Charity Groups Charitable organizations may be affected by the federal government’s proposed minimum 30 percent tax on capital gains and discretionary trusts. This concern was raised at a Senate Economics Legislation Committee hearing. The government’s budget announcement plans to replace the current 50 percent discount on profits with a flat 30 percent tax and an inflation-linked system covering the entire profit.

• Charities and philanthropic organisations may be impacted by the federal government’s plan to introduce a minimum 30 percent tax on capital gains and discretionary trusts.
• This issue was discussed at a Senate Economics Legislation Committee hearing with representatives from the ATO and Department of Treasury.
• The government announced in the federal budget that it will replace the current 50 percent discount on profits with a flat 30 percent tax and an inflation-linked system.