The Bottom Line
Updated Sunday 18 October 2026
The Treasurer introduced legislation for a 30 per cent minimum tax on discretionary trusts from 1 July 2028, calling it the most ambitious tax reform in a generation. The Treasurer said the number of trusts has more than doubled over 20 years to over 800,000, that families using trusts faced an average tax rate around 4 percentage points lower than comparable non-trust families, and that roughly 90 per cent of private trust wealth sits with the wealthiest 10 per cent of households.
In remarks at a G20 Finance Ministers and Central Bank Governors meeting, the Treasurer said losses of production, refining capacity and exports are dislocating global oil supply chains and transmitting higher prices through inflation, growth and borrowing costs, with Iran's closure of the Strait of Hormuz compounded by Russia's war in Ukraine. The Treasurer and UK Chancellor John Healey agreed that reopening the Strait of Hormuz is urgent and essential, and committed to deepen cooperation on energy, fuel, critical minerals and critical technology including artificial intelligence.
The ABS seasonally adjusted unemployment rate held at 4.7 per cent in September, unchanged from August, having risen from 4.5 per cent in July. The RBA cash rate stood at 4.6 per cent after the September decision, up 0.75 percentage points across three moves since February 2026. MacroBusiness reported that the September jobs result has tempered financial market expectations for a further rate rise at the November meeting.
OECD secretary-general Mathias Cormann warned, in a speech reported by The Guardian, that mainstream Australian parties should resist populist policies such as migration caps and tariffs, arguing productivity growth is the only reliable path to lower cost of living. The Guardian reported, citing Cotality data, that mortgage repayments are now cheaper than rent in some suburbs across Melbourne, Canberra and Darwin, with national median rents rising over the year to September while median property prices were flat.
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