A new consultation paper about modernising the taxation of trusts will give the trustees and beneficiaries of over 660,000 trusts the opportunity to have a say in their own financial future, Assistant Treasurer Bill Shorten announced today.

"The interaction of the trust law and tax laws has been an ongoing issue for some time, and it is time to resolve it for all the farmers and small businesses in Australia who use trusts to manage their financial affairs," Mr Shorten said.

The consultation paper explores the impediments to the effective operation of the trust income tax provisions in Division 6 of the Part III of the Income Tax Assessment Act 1936, as well as those hampering the effective taxation of trusts more broadly.

To read more please visit my Treasury website.