Small business tax reforms raise concerns in Australia and UK

The Australian Council of Small Business Organisations (Cosboa) warned that proposed trust tax changes could add roughly $15,000 to the annual tax bill of a typical small‑business owner, raising the total liability to about $60,000 and potentially costing $75,000 over five years. Cosboa says the measures would affect the 350,000‑400,000 SMEs that operate through trust structures, increasing costs at a time when many already face higher operating expenses and thin profit margins.

In the United Kingdom, HM Revenue & Customs opened a consultation on sweeping reforms that would increase the tax rate on shareholder distributions from a current maximum of 24% to as much as 47%. The proposals would re‑classify many payouts that are presently taxed as capital gains into income tax, impacting private‑company owners planning restructurings, share buy‑backs or succession. The consultation also includes changes to demerger relief and a clearer point‑of‑sale relief regime, while tightening rules on overseas company structures.