Trust tax plan's real cost could be triple government estimate
Government assumes accountants charge $91.54 per hour; real rates are $150 to $450.
The Albanese government passed a plan to impose a 30% tax on discretionary trusts from July 2028, affecting some 350,000 small and family businesses. The government estimates compliance costs at $780 million to $1.1 billion.
The government's modelling assumes professional advice will cost just $91.54 per hour, which tax agents say is unrealistic. Accountants typically charge $150 to $450 per hour for advisory work.
If businesses need about 120 hours of advice at $350 per hour, costs jump to $42,000 per business instead of about $11,000. CPA Australia warns the real one-off bill could hit $2.8 billion.
- $780 million to $1.1 billion
- Government cost estimate
- $2.8 billion
- CPA Australia estimate
- 350,000
- Affected businesses
- $150 to $450
- Real hourly rates
Why it mattersSmall business owners face much higher compliance costs than the government claimed, affecting their cash flow and planning.
AustraliaAustralian family businesses now operating through trusts will need to budget significantly more than government estimates for restructuring advice.
✓ Claims checked against the source. checked 2 h ago
