New 30 per cent trust tax will cost small businesses thousands
A new 30 per cent tax on trusts will force small businesses to restructure.
Laws were tabled in parliament introducing a 30 per cent minimum tax on trusts after the change was flagged in the May budget. Assistant Treasurer Daniel Mulino said the cost to comply would be in the thousands of dollars per business, based on their structure.
About 800,000 trusts exist in Australia, double the number from 25 years ago. The government says the trusts have let some people avoid tax burdens borne by wage earners.
Business groups oppose the move, saying trusts serve real purposes like protecting assets. The coalition strongly opposes the bill; Labor will need support from either the Greens or Coalition MPs to pass it.
A transition period is planned to let businesses adjust.
- 30 per cent
- Minimum tax rate
- About 800,000
- Trusts in Australia
- Doubled over 25 years
- Growth over time
- About 50 million dollars
- Economy-wide adjustment cost
Why it mattersSmall business owners using trusts face significant restructuring costs and tax changes that could alter how they run and own their operations.
AustraliaThe reform directly affects around 800,000 Australian discretionary trusts, mostly used by small business owners, and will reshape how they manage tax and assets.
Corroborated bythenightly.com.au
✓ Claims checked against the source. checked 3 h ago
Open this story in InSnip →
