Small Business Trusts Face 30 Percent Minimum Tax Despite Modest Incomes, Inquiry Hears
The ACCI said half of small business trusts have incomes below $75,000 but could face the proposed 30 percent minimum tax.
TL;DR
- Half of small businesses run through family trusts earn less than $74,700 annually.
- These businesses could face a minimum tax rate of 30 percent under proposed government changes.
- The ACCI believes the reforms will deter people from starting, investing in, and operating businesses.
- The government aims to stop income splitting to avoid higher tax rates, ensuring those with distributed income pay at least as much tax as wage earners.