Non-Business Trusts to Bear Most of Labor’s Proposed Trust Tax: Treasury
Treasury officials estimated that around 60 percent of the tax revenue would come from non-business trusts, including those used to hold investments.
TL;DR
- The government's proposed tax on family trusts would impose a 30 percent minimum tax rate on net income.
- This new tax is scheduled to take effect from July 2028.
- Treasury officials estimate that around 60 percent of the revenue will come from trusts that do not operate businesses.
- Trusts holding investments are a primary source of revenue for this new tax.
- About 40 percent of the revenue from business trusts is projected to come from businesses with annual net income below $1 million.