Proposed Trust Tax Could Jeopardise 20,000 Home Builds, Senate Inquiry Hears
Master Builders warned the tax reforms could increase the tax burden on a small family-owned construction business by up to 70 percent.
TL;DR
- Incoming tax reforms could put 20,000 home builds at risk, according to housing industry experts.
- The claim was made during a Senate inquiry examining a proposed 30 percent minimum tax on discretionary trusts.
- Discretionary trusts are used by approximately 20 percent of building and construction businesses.
- The industry warned of costs beyond tax and legal advice, such as changes to insurance and licensing difficulties.
- There is a risk that legitimate business restructuring could be mistakenly identified by regulators as illegal phoenixing.