Family Businesses Face Tens of Thousands in Fees to Escape Labor’s Trust Tax
CPA Australia pointed to one member’s experience, who owned a hotel and had to pay $22,000 to restructure and move the holding from a trust.
TL;DR
- Labor's new 30% minimum tax on discretionary trusts affects income splitting for tax purposes.
- Restructuring a family business from a trust to a company could incur fees ranging from $9,536 to $23,436.
- These costs include fees, registrations, refinancing, and the owner's time.
- One member cited by CPA Australia paid $22,000 to restructure a hotel holding.