Labor would impose a minimum tax rate of 30% on small family businesses structured through discretionary trusts. This is the same rate imposed on large multinational companies.
This would hit:
Small businesses would be hit by other Labor taxes, including:
Bill Shorten as Assistant Treasurer said:
We see trusts as a legitimate feature of how Australians conduct their financial affairs."
(Speech to Taxation Institute of Australia, 4/3/2011)
"The Gillard Government is not looking at taxing trusts as companies... Trusts are an important and growing part of Australia's economy."
(Press Release, 21/11/2011)
"The vast majority of family trusts are operated by tradies, farmers, shopkeepers, professionals and retirees... This is clearly just a case of the Labor Party going after hardworking small business owners because they are a 'soft target.' - Council of Small Business Organisations Australia, 31/7/2017