Australia has no 'baby tax', despite 480,000-view Facebook myth
A viral video falsely claims Australia taxes newborns; the real proposal affects discretionary trusts for less than 5% of taxpayers.
A Facebook video posted in September has misled hundreds of thousands of people into thinking Australia is taxing babies. The video, now viewed more than 480,000 times, shows a man claiming parents will be taxed for having children.
A video clip shows Opposition Leader Angus Taylor calling part of a proposal a "hidden tax on babies". Taylor was referring to draft trust tax legislation, not a newborn levy.
The real story: the federal government proposed a 30% minimum tax on discretionary trusts from July 2028 to stop "income splitting". The concern is that some families who add a newborn as a beneficiary could face higher tax.
However, the proposal affects fewer than 5% of individual tax filers. The draft bill is still open to public consultation.
- 480,000+
- Facebook video views
- 30% minimum on discretionary trusts
- Proposed tax rate
- July 1, 2028
- Tax effective date
- fewer than 5% of individual tax filers
- Taxpayers affected
Why it mattersClarifies a widespread false claim so families understand what the actual tax change means.
AustraliaMost Australian families are unaffected; only those with discretionary family trusts need to monitor the trust tax consultation process.
✓ Claims checked against the source. checked 3 h ago
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