# Australia trust tax proposal controversy > Live situation record from CLSTR: https://clstr.news/situations/australia-trust-tax-proposal-controversy > Updated: 2026-08-03T08:08:23.000Z. Sources: 4. Developments: 3. In early July 2026, the Australian government announced plans to change the tax treatment of discretionary trusts, raising concerns that the measures could harm small businesses. By the end of the month, budget details revealed a 30 % minimum tax on income from discretionary trusts effective 1 July 2028. Treasury Minister Jim Chalmers said the aim was to curb income‑splitting and align trust tax rates with employee rates. Business groups, including the Australian Chamber of Commerce and Industry and the Council of Small Business Organisations Australia, warned that the blanket rule would impose billions of dollars in additional tax and restructuring costs on the roughly 350,000 small enterprises that use such trusts, calling for more targeted anti‑avoidance measures. On 3 August 2026, two major industry bodies – CPA Australia and the Housing Industry Association – joined the opposition. CPA Australia warned that the proposal would generate A$1 billion to A$2.5 billion in professional‑advice fees alone, while the HIA said compliance costs and complexity would burden family‑owned building firms and undermine the government’s housing‑supply goals. Both organisations urged Treasury to reconsider the measure and publish a detailed economic impact assessment, highlighting potential effects on apprentices, local suppliers and community‑based builders. ## Timeline ### 2026-08-03: Australia's proposed minimum tax on discretionary trusts faces industry opposition Industry groups CPA Australia and the HIA warn that Australia’s proposed minimum tax on discretionary trusts could cost billions, increase compliance burdens and hinder housing supply. 2 sources. https://clstr.news/cluster/australias-proposed-minimum-tax-on-discretionary-trusts-faces-industry-opposition ### 2026-07-30: Australian Treasurer's Proposed 30% Minimum Tax on Discretionary Trusts Faces Business Opposition Australia's Treasurer Jim Chalmers proposes a 30% minimum tax on discretionary trusts, prompting ACCI and COSBOA to warn of billions in costs to small businesses and demand targeted anti‑avoidance rules. 2 sources. https://clstr.news/cluster/australian-treasurers-proposed-30-minimum-tax-on-discretionary-trusts-faces-business-opposition ### 2026-07-08: Australia's proposed trust tax changes threaten small businesses Australia’s draft trust tax reforms would levy a minimum 30% rate on trusts, affecting up to 210,000 small businesses and potentially raising their effective tax to 32%, prompting COSBOA to warn of costly res- 2 sources. https://clstr.news/cluster/australias-proposed-trust-tax-changes-threaten-small-businesses --- Cite as: Australia trust tax proposal controversy. CLSTR, https://clstr.news/situations/australia-trust-tax-proposal-controversy