[REVISION HISTORY]

Australia trust tax proposal controversy

Updated 1 time since CLSTR started tracking revisions of this situation.

What changed

2026-07-31 03:21 UTC → 2026-08-05 03:43 UTC · added ~~removed~~

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, ~~details emerged that the~~ budget ~~would impose~~ details revealed a ~~30%~~ 30 % minimum tax on income from discretionary trusts ~~starting~~ effective 1 July 2028. Treasury Minister Jim Chalmers said the aim was to curb income‑splitting and ~~bring~~ align trust tax rates ~~in line~~ with employee ~~tax~~ 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.

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