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Part of The Greens launched their Victorian election campaign in Melbourne, led by newly elected federal leader David Shoebridge.

How could David Shoebridge's hard bargaining on tax policy affect the federal government?

Possible What happens if… A possibility worth considering, not a forecast.

Greens' tax push may force federal government to reconsider trust tax carve-outs David Shoebridge, leading the Greens, is driving hard bargaining to ensure the proposed 30% minimum tax on discretionary trusts maintains its original intent. The Greens argue that the federal government has watered down the policy by including concessions and loopholes demanded by the business community. Shoebridge is pushing for a Senate inquiry into these carve-outs, which could force the federal government to adjust its legislative agenda and potentially remove exemptions that were introduced to placate wealthy tax-avoiders.

Reported by 1 independent outlet Written Oct 18
Effect
Mild negative
How direct
Stated in the reporting
When
Within weeks
The story
Gone quiet

How it reaches federal government

Reported by news outlets

Tap any step to see the evidence behind it.

The facts so far

As reported. Each one links to where it comes from.

  • The Greens are pushing for the 30% minimum tax on discretionary trusts to be maintained at its original intent.crikey.com.au
  • The Greens argue the policy has been 'watered down' by business demands and post-budget carve-outs.crikey.com.au
  • Shoebridge is pushing for a Senate inquiry into the carve-outs.crikey.com.au
  • The original policy intent was introduced by Treasurer Jim Chalmers to prevent the well-off from subverting the tax system.crikey.com.au

Why it matters

The integrity of the tax system is at stake, as the federal government initially caved to the business community's demands by offering exemptions and workarounds to avoid the 30% tax on distributions. If the Greens succeed in forcing a review, it could lead to the removal of these concessions, ensuring that wealthy tax-avoiders pay what they are supposed to pay.

This situation highlights the role of minor parties like the Greens as a crucial negotiating partner for the Labor government. While the government introduced the reform, the pressure from Shoebridge and the Greens is forcing a defense of the policy's original, more stringent goals against pro-business lobbying.

What we don't know yet

  • Will the federal government accept the Greens' demand for a Senate inquiry into the carve-outs?
  • Will the Coalition support the removal of the exemptions offered to the business community?

What would change this answer

The federal government agrees to a Senate inquiry into the carve-outs.This would increase the likelihood of the government having to adjust its policy stance, potentially leading to the removal of concessions.
The business community successfully lobbies the government to maintain the current exemptions.The pressure from Shoebridge would fade, and the policy would remain riddled with loopholes.

Who else could feel it

Other possible ripples from the same event.

Reporting

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The full eventGreens push for minimum tax on trusts and digital duty of care Everything aboutfederal government

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.