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.
Will the new minimum tax on discretionary trusts affect my building business structure?
Builders and trade contractors who operate through discretionary trusts could face higher tax bills if this policy proceeds, affecting business structure decisions.
Key takeaways
- The HIA formally opposes a proposed minimum tax targeting discretionary trusts.
- A new Excluded Election Trust regime is also part of the proposal and draws HIA criticism.
- Many builders and trade contractors use discretionary trusts, so this policy could affect them directly.
- No details on tax rates or implementation timeline are provided in the article.
Related
New trust tax would add growing pressure on small businesses
The Housing Industry Association (HIA) says small businesses across Australia face growing pressure from rising costs, economic uncertainty and more regulation. It argues a proposed new trust tax would add to that burden.
Why it matters: Builders and other trades often run through family or discretionary trusts, so a new trust tax could raise their tax bills and compliance work. That adds to already rising business costs.
Trusts Tax will hit small business and home buyers
The article says the Federal Government is about to hit more than 90,000 construction businesses with higher taxes and costs through a trusts tax. It argues the change will hurt small businesses and home buyers. The supplied text cuts off early.
Why it matters: Builders and other construction trades may face higher tax and costs, which could squeeze margins or push up prices for home buyers. Details are limited, so check how the tax applies to your structure.
ATO ramp up of small business debt collection
Master Builders Australia has published a news item saying the ATO is stepping up its debt collection against small businesses. The text provided gives no further detail on the measures, timing or amounts.
Why it matters: Builders and other trade businesses with outstanding tax debts may face firmer ATO collection action, which could strain cash flow. Details are not in the source text, so check the ATO or Master Builders directly.