Are proposed changes to trusts a 'kick in the guts' or 'leveling the playing field'? | The Business

By ABC News (Australia)

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Discretionary trusts have surged in popularity as a tax reduction strategy with over one million held by Australians. Over the years, changes have been weighed by both sides of parliament, but today the Treasurer introduced its tax bill into parliament. The reforms plan to tax trust income at a minimum 30 per cent to level the tax rate on trusts with the tax rates paid by workers, to make it fairer for workers who are subject to tax brackets. However, the national body of Australia's residential building industry, the Housing Industry Association is vehemently opposed saying this is a "new tax on tradies." HIA managing director, Jocelyn Martin says the majority of their homes are built by small businesses, of which, around three in five use a trust structure to manage their business. She says even if small businesses aren't imapcted by the trusts changes, they may incur costs by engaging lawyers and accountants "that could cost anywhere between $10,000 and $25,000 to actually get

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