Investing For Doctors Podcast
Welcome to the Investing For Doctors podcast. Here we talk about personal finances, investing, wealth creation, accounting, and personal development that will aid you in your life journey as a doctor.
Please note that the information provided in this podcast is for educational and entertainment purposes only. The content should not be considered as financial advice and your personal situations have not been taken into account. Before making any financial decisions, we strongly recommend consulting with the relevant professional(s).
Investing For Doctors Podcast
What The Draft 30% Trust Tax Means For Your Discretionary Trust And Bucket Company | EP 85
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Munzurul Khan, Chairman of KHI Partners and in-house accounting team, is back for Part 2 to go through what is still in draft from the May 2026 budget. We recorded this at the end of September 2026. None of it is law yet, so it may change.
We start with the difference between a fixed trust and a discretionary trust, then the 30% minimum tax the budget puts on discretionary trusts from 1 July 2028. Munzurul works through a $10,000 distribution to show how a bucket company could end up paying 51% in total, why that was never meant to happen, and what the exposure draft proposes instead: pre-nominating your beneficiaries and their shares, with penalties if you distribute any other way.
Then we get to the cost of acting. The federal tax relief for restructuring doesn't cover stamp duty, which averages around 4% to 4.5% and is paid in cash on assets you haven't sold. Munzurul also covers a possible four layer structure with a holding company, a second idea using different share classes, why he calls both of them academic for now, and what he is doing with his own structures.
If your investments sit in a discretionary trust or a bucket company, start here before you change anything.
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TIME STAMPS:
00:00 Intro/Hook
01:55 Where Part 1 left off, and what is still in draft
03:36 Fixed trusts vs discretionary trusts
07:02 What the exposure draft says and where it's up to
07:18 The 12 May rule: a 30% minimum tax paid by the trustee
08:55 Worked example: $10,000 distributed to an individual
10:23 Why a bucket company ends up paying 51%
11:58 The draft's fix: no double taxing
12:09 Pre-nominated beneficiaries and fixed shares
14:03 Example: 50% to the bucket company, 12.5% to four others
15:03 What the bucket company pays under the draft
16:04 Penalties and the compliance risk of fixing your beneficiaries
17:44 Restructuring: the 1 July 2028 start and three year transition
18:42 The stamp duty problem
20:14 Why stamp duty is a cash flow issue
21:01 Stay discretionary and pay 30%, or go fixed
21:30 The traditional structure vs a four layer holding company structure
23:06 Why Munzurul isn't changing his clients' structures yet
23:42 Dr Bi on already investing through a holding company
24:55 What Munzurul is doing with his own investments
26:53 Second idea: different share classes
28:13 Stay calm, don't panic, speak to your accountant
28:37 Conclusion/Outro
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SHOW NOTES LINKS
https://au.linkedin.com/in/mian-bi
https://www.linkedin.com/in/munzurul-khan-7ba6a318
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DISCLAIMER
The information provided in this podcast is for general purposes only and should not be considered personal advice. Always consult with qualified professionals or experts in the relevant field for personalised advice tailored to your specific situation.
