Australia's proposed minimum tax on discretionary trusts faces industry opposition

The Australian federal government’s plan to impose a minimum tax on discretionary trusts has drawn strong objections from two major industry bodies. CPA Australia warned that the measure would impose “significant and unnecessary costs” on small and family‑run businesses that use trusts for legitimate purposes, estimating that restructuring could generate between A$1 billion and A$2.5 billion in professional‑advice fees alone, not counting state stamp‑duty hurdles. The Housing Industry Association (HIA) echoed these concerns, arguing the tax would raise compliance costs and complexity for family‑owned building firms, undermining the Albanese government’s goal of increasing housing supply. Both organisations urged Treasury to reconsider the proposal and publish a detailed economic impact assessment, highlighting the potential burden on apprentices, local suppliers and community‑based builders.