Proposed Trust Tax Could Jeopardise 20,000 Home Builds, Senate Inquiry Hears

Housing industry experts estimate that incoming tax reforms may jeopardize up to 20,000 home builds in the near future. This warning was issued during a Senate inquiry into the potential economic effects of a proposed 30 percent minimum tax on discretionary trusts. The industry highlighted concerns beyond tax advice, including insurance, licensing, and the risk of regulatory misinterpretation of business restructuring as illegal phoenixing.

• Incoming tax reforms could put 20,000 home builds at risk, according to housing industry experts.
• The claim was made during a Senate inquiry examining a proposed 30 percent minimum tax on discretionary trusts.
• Discretionary trusts are used by approximately 20 percent of building and construction businesses.
• The industry warned of costs beyond tax and legal advice, such as changes to insurance and licensing difficulties.
• There is a risk that legitimate business restructuring could be mistakenly identified by regulators as illegal phoenixing.