Australia introduces minimum tax on large trust schemes; businesses warn of compliance…

The government plans to impose a minimum 30 per cent tax on the net income of 840,000 trusts, aiming to close a tax advantage used by wealthy investors and family businesses. These reforms, which begin on July 1, 2028, are projected to raise $4.47 billion in 2029/30. Small business groups warn that 350,000 family firms could face higher taxes or costly restructures due to the policy.

The policy targets Australian trusts, which hold combined assets of $2.9 trillion and generate $600 billion in annual income. While the government stated the reforms affect fewer than 10 per cent of small businesses, the Coalition vowed to repeal the changes, citing compliance costs topping $1 billion.