Government Open to Changing Discretionary Testamentary Trust Tax

The Nine Newspapers report the government is open to changing its decision to levy discretionary testamentary trusts with a 30 per cent tax on income.

A discretionary testamentary trust is established in a will. When a person dies, the trustee and beneficiaries are able to use any inheritance placed in the trust the same way as an ordinary discretionary family trust.

Health Minister Mark Butler says the government "still" thinks the budget is right for Australia.

Butler says people with existing discretionary testamentary trusts won't be affected by the changes in the budget.

Speaking to Channel Seven, the health minister says going forward, people should look at fixed trusts to avoid the minimum 30 per cent tax.

"This is a significant change to tax arrangements. We've been clear about that. I think it's the right package because what it does at its core is to treat all earnings, all income in broadly the same way in terms of their tax responsibilities," Butler says.

The social services minister says she's not surprised about some people's reaction to the federal government's budget.

Labor announced changes to negative gearing, capital gains tax and trusts as part of this year's budget.

The 50 per cent capital gains tax discount will be replaced with a discount based on inflation, and a 30 per cent minimum tax will apply.

Negative gearing will be restricted to new builds, but be grandfathered for existing properties.

Speaking to ABC News Breakfast, Tanya Plibersek says "political opponents will always try to weaponise" changes that the government seeks to make.

"I think when most Australians take a bit of time to have a look at what we're actually doing [they] will understand that we're doing this for their kids and grandkids," Plibersek says.

"If we want young people in Australia today to have the same opportunities as their parents and grandparents had to buy a house and live in it and raise a family then we need to change what we've been doing in recent years," she says.

Social Services Minister Tanya Plibersek says a group of ISIS-linked Australians who have left a camp in Syria will be taken into custody if they're suspected of having committed crimes.

Another group of Australian women and children have left a camp for the families of jailed and killed Islamic State fighters in north-eastern Syria.

The ABC has seen the bus carrying the group, which left the Al Roj camp on Thursday afternoon local time.

Speaking to ABC News Breakfast, Plibersek says the group will be treated with the "full force of the law" if they're suspected of committing crimes overseas.

"I can tell you they will face the same consequences as their first group which is if there are any crimes they are accused of, they will be taken into custody and treated with the full force of the law," Plibersek says.

Hello and welcome to our federal politics live blog. It's great to have you join us early this Friday morning!

I'm Josh Boscaini joining you live from Parliament House in Canberra, here and ready to bring you all of today's federal politics news.

I'm not too sure what could happen today, but we'll probably hear more reaction about the federal budget.

Let's get into the day and see what happens!

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