Senate questions cost of trust tax restructuring as small-business groups warn
A Senate inquiry on trust tax heard warnings. Small businesses worry about restructuring costs and complexity.
The Senate economics committee is looking at a plan. The plan would set a 30% minimum tax on discretionary trusts.
Small family businesses often use this structure. Business leaders said the government's cost estimate is wrong.
They said $91.54 per hour for expert advice is far too low. Many small businesses use trusts to pay family members through distributions rather than wages.
The new rules could force restructuring. Accounting and small-business groups say the rules are too hard.
The deadlines are too tight. They want delays and major changes.
The government wants the tax to start July 2028. This gives businesses one year to decide on permanent changes.
- 30%
- Minimum tax rate
- $91.54 per hour
- Government cost estimate
- July 2028
- Implementation date
- One year
- Decision timeframe
Why it mattersIf passed, the reforms could force thousands of Australian small businesses to restructure. They would need to change how they operate and pay family members. There would be significant professional costs.
AustraliaAustralian small businesses using trusts could face higher taxes and restructuring costs, potentially affecting how family businesses pay owners and workers.
