Explore the latest developments concerning Trust tax overhaul.
Trust tax overhaul set to raise $40b as businesses warn of accounting turmoil
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Business groups are warning years of expensive turmoil will be unleashed by the federal government’s plans for a minimum tax on discretionary trusts as Treasurer Jim Chalmers warns that without reform, the nation’s tax revenue will be eaten away, leaving working Australians exposed to even higher taxes.
Treasurer Jim Chalmers on Wednesday introduced into parliament the third key budget tax change, imposing a minimum 30 per cent tax on the net income that flows out of the estimated one million discretionary trusts every year.
Labor’s trust tax costs spiral
The Greens’ threat to block the government’s crackdown on trusts unless it removes the exemption for charities would deprive the not-for-profit sector of billions of dollars in donations, as accounting groups warn the costs of complying with the new regime will be far more than the $1.5 billion the government has estimated over the next decade.
Treasurer Jim Chalmers, trapped between the demands of the business sector and the Greens, introduced the legislation to impose a minimum 30 per cent tax on discretionary trusts into parliament on Wednesday, with the aim of passing it by November.
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Private school fees loophole a sticking point in Labor's trust tax plan Greens say
Nick McKim has accused Labor of 'watering down' its trust taxation plans. (ABC News: Ebony ten Broeke/Matt Roberts)
The Greens say a "loophole" for private school fees is a sticking point in Labor's proposed trust laws.
Jim Chalmers will introduce legislation for the 30 per cent minimum tax on discretionary trusts on Wednesday, amid stiff business opposition.
Labor requires the support of the Greens in the Senate to pass the tax hike, given that the Coalition is opposed.
Parents who pay private school fees from their trust funds could escape Labor's proposed trust tax, in what the Greens say is a "loophole" that must be closed.
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