CPA Australia Urges Review of Minimum Tax Proposal Affecting Discretionary Trusts
CPA Australia has called on the Australian federal government to reconsider its proposed minimum tax for discretionary trusts, warning that it would impose significant and unnecessary costs on small businesses. The professional body argues that many family-run enterprises use these trust structures in good faith based on existing laws, and changing them now undermines certainty within a self-assessment tax system. According to CPA Australia's Tax lead Jenny Wong, restructuring is not as straightforward as the government assumes; it involves complex coordination among accountants, lawyers, valuers, financiers, and state revenue authorities. The organization estimates that professional advice costs alone could reach A$1 billion–A$2.5 billion if half of affected businesses restructure within a three-year window. CPA Australia also highlighted concerns about the feasibility of completing such large-scale changes in time while maintaining compliance with existing obligations, and warned that state stamp duties may become major barriers for restructuring efforts.
Topics: government_proposal small_business_impact trust_taxation