Published • loading... • Updated
Contentious Trust Tax Bill Tabled as Farmers, Small Business Face Major Changes
The bill would set a minimum 30% tax on discretionary trust income and could raise about $4.5 billion over five years, the government said.
- Treasurer Jim Chalmers introduced legislation on Wednesday imposing a minimum 30 per cent tax on discretionary trust income, with reforms set to take effect in 2028 and raise more than $40 billion over the next decade.
- Data reveals discretionary trusts have more than doubled over 20 years to more than 800,000, placing unsustainable strain on the budget; about 95 per cent of workers do not use trusts, yet the top 10 per cent of households capture most income.
- Master Builders Australia chief executive Denita Wawn criticized the bill's failure to address "significant" concerns raised during consultation. Wilson Asset Management chairman Geoff Wilson warned restructuring could cost businesses between $8 billion and $13.3b.
- Facing opposition from the Coalition, Labor requires Greens support to pass the legislation in the Senate. Greens economic justice spokesman Senator Nick McKim demanded adjustments, arguing "discretionary trusts are one of the ways wealthy people minimise their tax while workers pay more than their share."
- Existing trusts may make an irrevocable fixed-distribution election instead of restructuring, though critics warn this decision is significant. Chalmers confirmed consultations with the states regarding stamp duty waivers remain ongoing following questions raised during Tuesday's weekly caucus meeting.
Insights by Ground AI
14 Articles
14 Articles
Sydney Morning Herald+4 Reposted by 4 other sources
Trust tax overhaul set to raise $40b as businesses warn of accounting turmoil
Jim Chalmers faces a nearly two-year campaign against the reforms despite insisting he wants to make taxation fairer and safeguard the entire system.
·North Sydney, Australia
Read Full Article
Coverage Details
Total News Sources14
Leaning Left3Leaning Right1Center5Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
L 33%
C 56%
11%
Factuality
To view factuality data please Upgrade to Premium
