The Federal Government's proposed trust tax changes could force many small builders to choose between paying significantly more tax or undertaking a costly and complex restructure, potentially requiring new licences, contract changes and additional regulatory approvals.

Master Builders has been hearing serious concerns from its members about the implications of the Federal Government’s proposed 30 per cent minimum trust tax for small and family businesses. 

This proposal by the Government will force many to choose between paying significantly more tax or undertaking a costly and complex restructure to establish a completely new entity. This will also force small businesses to start ‘afresh’ requiring a new license, complex contractual amendments, other regulatory compliances and wiping out your business history.

In NSW, there are 155,901 small businesses in the construction supply chain and around 1 in 5 of these firms use trusts, we are talking about a systemic risk to our industry.

Master Builders is calling on the Albanese Government to consider grandfathering arrangements for existing trusts, a permanent small business exemption, a more targeted definition of discretionary trust, and a comprehensive regulatory impact assessment be undertaken before any trust tax changes are progressed.

Learn more about the impact of Albanese Government's proposed changes to discretionary trusts  Master Builders Australia Ltd - Doc 4_Summary of submission.pdf - All Documents

How you can help!

Contact your local Federal Member of Parliament that you are concerned about the Federal Governments changes to Trusts. You can find your electorate at https://electorate.aec.gov.au and access a template letter/email here.