New trust tax divides small business from Albanese government
Government will impose 30% minimum tax on 840,000 trusts from July 2028, raising $4.47 billion by 2029-30.
The government will impose a 30% minimum tax on income from 840,000 trusts from 1 July 2028. Australian trusts hold $2.9 trillion in combined assets with annual income of $600 billion.
Treasury data shows the top 10% of income earners receive about two-thirds of trust distributions, while the bottom 10% receive about 1%. The measure is projected to raise $4.47 billion by 2029-30.
Supporters say it closes a loophole that wealthy people use to spread income across family members and reduce their tax rates. Small business groups say affected family trusts face a choice between "substantial tax increases" or restructuring costs in the thousands of dollars for professional fees and duties.
Treasury estimates implementation costs at $940 million, while the Coalition claims costs could reach up to $13.3 billion.
- 840,000
- Trusts affected
- $2.9 trillion
- Total trust assets
- $4.47 billion
- Revenue raised by 2029-30
- 1 July 2028
- Commencement date
Why it mattersThe change affects how many Australian workers and small family businesses structure their income, with potential costs reaching thousands of dollars per business to restructure.
AustraliaAustralian small family businesses and self-employed workers using trusts will face higher tax or costly restructuring from July 2028.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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