Why Some Australians Could Pay 3 Times More Tax Under Labor’s Trust Plan

A small business owner earning $45,000 through a family trust could pay more than three times as much tax as an employee on the same income.

Why Some Australians Could Pay 3 Times More Tax Under Labor’s Trust Plan

TL;DR

  • A small business owner earning $45,000 via a family trust could pay more than three times the tax of an employee on the same income.
  • This potential disparity was highlighted during a Senate inquiry examining Labor’s planned 30 percent trust income tax.
  • Treasury officials confirmed the possibility of higher tax burdens for trust beneficiaries in certain situations.