Government's trust tax throws builders and consumers under the bus
Federal Government trust tax changes will hit small building businesses with significant extra costs. Industry groups warn the reforms will hurt both builders and consumers.
Tens of thousands of dollars in additional costs expected for small building businesses under proposed trust tax changes.
How will the Federal Government's trust tax changes affect my building business costs?
Builders running business trusts face tens of thousands in extra tax costs. This could push up project prices for consumers and squeeze already-tight margins for small construction firms.
Key takeaways
- Federal Government is proposing changes to how trusts are taxed, affecting small building businesses.
- Small builders using trust structures could face tens of thousands in extra annual costs.
- Higher business costs are likely to be passed on to consumers through increased project prices.
- Industry is warning the reforms will harm both tradespeople and their clients.
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.