Small Business voice concerns about proposed trust changes
The Labor Party’s proposed plan to tax distributions from family trusts will see fewer incentives for small businesses to go into operation, reducing job growth across the country, according to one small business owner.
Earlier this week, Labor announced that it was seeking to tax a minimum of 30 per cent on trust distributions to individuals.
Trusts were a valuable tool in attracting entrepreneurs to set up business because it gave them a chance to minimise their tax obligations, while providing asset protection and an avenue for business succession.
These are the entrepreneurs that are building businesses in the country and creating employment and there has to be some incentive to be taking on that risk.
t comes down to the fact that many small businesses don’t make profits for [many] years and when they do start making profits, they get a chance to stream the income through the family and minimise the tax and hopefully put some money away for super but they get hit by rules changes like this.
These changes that would negatively impact “genuine Australian small businesses”.