Another tax, fewer homes: HIA
The HIA has warned Treasury that a proposed minimum tax on discretionary trusts will reduce housing supply, contradicting the government's own housing targets.
Will the new minimum tax on discretionary trusts affect my building business?
Builders and contractors operating through discretionary trusts could face higher tax burdens, raising construction costs and reducing new housing projects.
Key takeaways
- HIA has submitted to Treasury opposing a proposed minimum tax on discretionary trusts.
- The HIA says the tax contradicts the Albanese government's housing supply goals.
- Builders using discretionary trust structures could face increased tax obligations.
- Higher costs from the tax may reduce the number of new homes being built.
Related
Minimum tax on discretionary trusts
The Housing Industry Association has come out against a proposed minimum tax on discretionary trusts and the related Excluded Election Trust regime. No further detail on the policy mechanics is provided in the article.
Why it matters: Builders and trade contractors who operate through discretionary trusts could face higher tax bills if this policy proceeds, affecting business structure decisions.
Advancing the industry's case in Canberra
HIA held a major advocacy week in Canberra covering workforce, taxation and migration policy. Members were brought directly into discussions with political leaders on key industry issues.
Why it matters: Builders and associated trades could see changes to workforce supply, tax settings and migration rules that directly affect hiring and business costs.
Builders bring productivity and tax concerns to Canberra
The HIA has taken housing productivity and discretionary trust tax concerns to Canberra policymakers. They warn proposed trust tax changes could hamper home building efforts.
Why it matters: Builders and contractors operating through discretionary trusts face potential tax changes that could affect business structure and profitability, hitting small building firms hardest.