WESTERN AUSTRALIA PARTY

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NO! - TO ‘FAMILY TRUST’ TAX CHANGES

Labor is proposing to tax all distribution from “Family Trusts to persons over 18 at 30%.

The WESTERN AUSTRALIA PARTY strongly opposes such changes.

Currently, distributions to family trusts are taxed at the normal income tax rate of the beneficiary. 

Trusts are an important vehicle for many investors and small businesses. However, there are many types of trusts, trusts that can serve similar functions to the Family Trust. And it would not be practical or sensible to apply the 30% distribution tax rules to all trusts as it would compromise their functions.

trusts are core to the function of many small businesses and investment vehicles.

The use of these trusts as a financial vehicle cannot be banned.  They are vital for many purposes including, business, superannuation, asset protection, and holding of assets after death and on behalf of minors

The proposal in its current form would see all holders of family trusts amend their structures to unit trusts or companies to achieve the same results.

 These would then perform the same function as the Family Trust previously did, but without the new tax burden. Small businesses would account for any ‘year on year’ income fluctuations by amending the wages they pay themselves and their partners, or via franked dividends to themselves as company shareholders.

 Labor claims this policy will raise $1 billion in extra taxes. But the WESTERN AUSTRALIA PARTY disagrees. 

 If most trust holders change their structures, the extra revenue would more likely be near nothing. There would, however, be a cost incurred throughout the economy as a large number of family trust holders amend their holding structures, possibly even capital gains implications to some.

 This proposed change is yet another example of a waste of time and money for many Australians and small businesses.

 The WESTERN AUSTRALIA PARTY supports Family Trust distributions tax rules in their current form. 

 

Julie Matheson, BA (UWA), Dip FP (Deakin), CFP (FPA)

Party Leader and Senate Candidate for the WESTERN AUSTRALIA PARTY

Contact: 0409 294 495 | e: This email address is being protected from spambots. You need JavaScript enabled to view it. | w: westernaustraliaparty

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