As I just discovered while reading about trusts, there is some scientific basis to the idea of trusting your gut.

But you’re here for money news - so let’s keep the trust, drop the gut, and get into it.

The quote: “Over the next 3 years Lush will be coming out of all 10 of our Westfield locations across Australia. We aim to grow our presence…”
Lush Cosmetics, in a statement announcing its departure from all 10 of its Westfield locations across Australia. It is not yet clear when exactly the Westfield stores will close or how many jobs will be impacted.

The stat: 4.7%. The International Monetary Fund’s forecast for Australia’s unemployment rate in 2027, up 0.3 percentage points from its 2026 forecast. We’re the only developed economy expected to see unemployment rise, although the rate remains well below that of most other developed countries.

The graph:

The ASX 200 tracks the 200 largest companies listed on the Australian share market. In the past month, the ASX 200 has risen by 0.4%. The ASX 200 fell to a four-month low on 1 October after the Reserve Bank of Australia raised interest rates to its highest level in 15 years, oil prices rose amid the Middle East conflict, and government borrowing costs increased. Since then, the recovery has been driven by easing oil prices and a rebound in mining stocks.

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Among households relying on Youth Allowance that were living in poverty, incomes were an average of $517 a week below the poverty line, the largest gap of any income support payment.

That is according to a report released on Monday by the Australian Council of Social Service (ACOSS) and UNSW Sydney.

ACOSS is the national peak body for community services, advocating for people affected by poverty, disadvantage, and inequality.

The report, Poverty in Australia 2026: Who is affected, is the 30th edition and uses data from 2022-23.

It defines the poverty line as household income below half the national median income, adjusted for household size. For example, the poverty line is $584 a week for a single adult and $1,051 a week for a couple with one child.

The report found that one in seven people, and one in six children, lived below the poverty line. The rate has risen since 2019, when it was about one in eight people. The rates were higher for families with one parent, people with disability, and First Nations people.

More than three in four people (76%) in households relying mainly on JobSeeker lived below the poverty line, the highest of any income support payment. As we mentioned above, those on Youth Allowance were the furthest below the poverty line.

About one in five renters (21%) lived below the poverty line, roughly twice the rate for people paying off a mortgage (10%) or those who owned their home outright (9%). Among people living in social housing, more than half (55%) were in poverty.

Because the data is from 2022-23, it predates the September 2023 increases to JobSeeker, Youth Allowance, and rent assistance, but rents and other housing costs have also risen since then. That means the picture today could be better or worse for some groups.

ACOSS has called on the Federal Government to lift JobSeeker and Youth Allowance to at least the pension level (currently $1,237.70 a fortnight for a single person) and ensure they grow at the same rate as wages or inflation (whichever is higher). It also wants more social housing, stronger protections for renters against excessive rent increases, and a commitment to full employment.

A spokesperson for Social Services Minister Tanya Plibersek told TDA that social security payments “provide an important safety net while people look for work or if they can’t work”. The spokesperson said the Government had boosted JobSeeker by $4,700 a year and Youth Allowance by more than $3,800 a year, and increased maximum rates of rent assistance by more than 50% since Labor came into government in 2022.

Reporting by Adam Wan.

Remember when the Government dropped its Budget all the way back in May? All the headlines (and, seemingly, your family members and people from high school you still follow) focused on changes to negative gearing and capital gains tax.

But the Budget also announced another big tax change that didn’t get as much attention: a new 30% minimum tax on discretionary trusts. Legislation to make it happen is expected to be introduced to Parliament today.

What are trusts and what does the Government propose changing?

A trust is a way to hold assets (like money, property, shares, or a business) on behalf of other people. The person (or company) in charge is called the trustee and the people who benefit are called beneficiaries.

People use trusts for a variety of reasons, including tax benefits (example below), protecting assets if someone goes bankrupt, or looking after assets for people who can’t manage them themselves (for example, children).

In a discretionary trust, the trustee gets to decide how much and who receives income from the trust every year — that’s why it’s called “discretionary”. Trust distributions are taxed at each beneficiary’s personal income rate, so the trustee can direct more money to lower earners and shrink the overall bill.

Let’s say a family business makes $500,000 profit. If the business were run as a sole trader, the business owner would pay personal income tax on that amount at their marginal rate, which can reach 45%, plus a 2% Medicare levy.

With a discretionary trust, the trustee can split the business’s profit among the beneficiaries, in this case the family members. Say the family has three children over 18 who are currently studying at uni and a parent who works part-time. By spreading the money across them, more of it is taxed at their lower rates, and the family’s total tax bill can end up much lower than if one person earned it all.

According to the Federal Treasury, around 350,000 active small businesses operated through a discretionary trust in 2022/23.

From 1 July 2028, discretionary trusts would have to pay a minimum tax of 30% on their income. The trustee pays the tax before the money goes out to the beneficiaries.

Beneficiaries on a tax rate higher than 30% will pay the difference in taxes. For example, if $100 of trust income goes to a beneficiary with a 37% tax rate, the trust pays $30 in taxes, and the beneficiary pays $7.

However, a beneficiary on a tax rate lower than 30% will not get any money back. This takes away most of the tax benefit that we saw in the example above.

Families who are affected can either switch to a different setup (like a company) or lock in upfront who gets paid and how much going forward, to avoid the new tax.

Some trusts, like those set up through a will, are excluded.

Treasurer Jim Chalmers said the changes to discretionary trusts are designed to “better [align] the tax rate on trust income with tax rates paid by workers.”

In an interview with ABC Radio National, Shadow Treasurer Tim Wilson stated that the Government “really need[s] to abandon” the changes.

Wilson argued that tax minimisation isn’t why small businesses use trusts, and that the changes had “no consultation, it did not get taken to an election, and it’s going to cause chaos for financing of small businesses into the future.” Treasury held consultations, though only after the Budget was released.

For most people, nothing. The Government says more than 95% of taxpayers and more than 90% of small businesses won’t be affected in any given year.

If you are a beneficiary of a discretionary trust (if you’re not sure, ask your parents!) and you’ve been receiving money from it, that could change. From July 2028, you’d no longer get the tax benefit of being on a lower rate, so families may restructure their tax arrangements in response.

Either way, nothing changes until 1 July 2028 (assuming the bill passes). If your family has a discretionary trust, now’s a good time to chat with your family or your accountant.

Parliament is expected to introduce the changes today. If the Coalition doesn't support the changes, the Government will need the Greens or the crossbench to pass the bill.

Reporting by Adam Wan.

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Bumble could soon be sold for about $US1 billion.

According to the Wall Street Journal, Ithaca Holdings (a new firm founded by two Silicon Valley executives) has put in an offer to buy Bumble for roughly $US1 billion ($AU1.44 billion). After the news broke, Bumble shares jumped 50%.

Assuming Ithaca and Bumble don’t ghost each other, a deal could come as soon as this week.

Reporting by Adam Wan.