Family Tax Calculator — Dividends: Direct vs Family Trust

Australia. Compares distributing $400k of company profit as dividends directly to two adults versus through a family trust — including a third (or more) beneficiary. Uses FY26 resident brackets and assumes the proposed FY28 30% minimum tax on trust distributions becomes law.

Educational model — not tax advice. Every assumption below is editable.

1 · Company & profit

Company profit (before company tax) Company tax rate (%) 25% = base-rate entity (turnover < $50m, mostly active income). Use 30% otherwise.

2 · Primary adults (shareholders / primary beneficiaries)

Adult 1 name Income before dividend

Adult 2 name Income before dividend

Direct scenario — Adult 1 shareholding (%) In the direct-dividend scenario, dividends must follow shareholding (Adult 2 receives the remainder). Streaming is not possible.

3 · Extra trust beneficiaries

Additional adult beneficiaries the family trust can stream income to (e.g. a relative on a low income). Add as many as you like.

4 · Distribution method & FY28 rules

Trust split method Optimise auto-streams to the lowest-taxed beneficiaries first. Manual reveals a share field on each beneficiary.

FY28: 30% minimum tax on trust distributions · minimum rate (%) Assumed FY28 law. Untick to see the position under today's rules.

Include 2% Medicare levy