Coalition and Greens oppose Labor's new discretionary trusts tax
Summarised from 2 outlets · Updated 14 Oct, 04:32 · Archive
Australia's Coalition and Greens say they will fight the Albanese government's proposed 30 per cent minimum tax on discretionary trusts.
The Albanese government has introduced legislation to impose a 30 per cent minimum tax on discretionary trusts. Treasurer Jim Chalmers said the tax would apply to trustees before distributions to beneficiaries, with non-corporate beneficiaries receiving non-refundable offsets. The rate matches what workers earning between $45,000 and $135,000 pay annually.
The reforms target tax avoidance strategies where high earners distribute trust income to relatives with no taxable income, such as non-working spouses, reducing overall family tax. Current rules tax beneficiaries rather than trusts themselves, enabling this arrangement. Chalmers listed exemptions including fixed trusts, charitable trusts, superannuation funds, primary production income, deceased estates and certain discretionary testamentary trusts.
Both the Coalition and the Greens have signalled opposition, though for different reasons. The Coalition, echoing concerns from business groups, argues the tax would hurt small businesses structured as discretionary trusts by effectively raising their base rate from 25 to 30 per cent whilst pressuring cash flow. Both parties want the legislation sent to a Senate inquiry for further scrutiny.
How it is being reported
- Coalition, Greens vow fight on Labor’s trusts taxA key component of the Albanese government’s economic agenda is under threat, with the Coalition and the Greens looking to work together to scupper it.The West Australian · 14 Oct, 04:12
- Coalition, Greens vow fight on Labor’s trusts taxA key component of the Albanese government’s economic agenda is under threat, with the Coalition and the Greens looking to work together to scupper it.Perth Now · 14 Oct, 04:11
In this story: Albanese government · Jim Chalmers · Coalition · Greens · Australia
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