Housing Industry Challenges $141 Million Regulatory Cost Estimate for Trust Tax Reforms

Representatives from the housing industry are questioning the government’s projected $141.5 million annual regulatory cost for proposed discretionary trust tax reforms. They argue that the actual financial burden on businesses, particularly smaller construction companies, could be significantly higher than estimated. Concerns were voiced during a hearing where the CEO of the Housing Industry Association stated the government’s assessment did not fully consider the potential business consequences.

• Housing industry representatives challenge the government’s estimate of $141.5 million (US$97 million) in annual regulatory costs for proposed discretionary trust tax reforms.
• They warn that the reforms could impose a considerably greater financial burden on businesses than projected.
• The proposed 30 percent minimum tax on discretionary trusts is expected to affect numerous smaller building and construction companies.
• The Housing Industry Association’s CEO stated that the government’s estimate did not adequately assess the potential business consequences.