Greens block trust tax unless school fees loophole closes
Private school fees paid from trusts escape Labor's 30 per cent minimum tax, the Greens say.
Treasurer Jim Chalmers is introducing a 30 per cent minimum tax on discretionary trusts on Wednesday. The tax is designed to stop wealthy people using complex trusts to dodge tax bills.
The Greens, whose Senate votes are needed to pass it, say an exemption for charity and school payments opens a loophole for rich families. Parents could pay private school fees from trusts and sidestep the higher tax.
The government expects to raise $4.5 billion in the first year. About 350,000 small businesses use discretionary trusts, and the Coalition opposes the bill.
- 30 per cent
- Tax rate
- 4.5 billion dollars
- Expected revenue first year
- 350,000
- Small businesses using discretionary
- Nick McKim
- Greens spokesperson
Why it mattersThe tax fight reveals tension between Labor's revenue push and protecting small business, while the Greens push for tighter rules on wealthy families.
AustraliaAustralians with trusts face a new 30 per cent tax unless the parliament votes it down; school fees may become more attractive to wealthy families if the loophole stays.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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