Family Businesses Face Tens of Thousands in Fees to Escape Labor’s Trust Tax
CPA Australia pointed to one member’s experience, who owned a hotel and had to pay $22,000 to restructure and move the holding from a trust.
Family businesses are facing significant costs, potentially tens of thousands of dollars, to restructure their assets and avoid the Labor government’s new 30 percent minimum tax on discretionary trusts. CPA Australia estimates that changing from a trust to a company structure could cost between $9,536 and $23,436. One specific case involved a hotel owner paying $22,000 for restructuring.
- Labor’s new 30% minimum tax on discretionary trusts affects income splitting for tax purposes.
- Restructuring a family business from a trust to a company could incur fees ranging from $9,536 to $23,436.
- These costs include fees, registrations, refinancing, and the owner’s time.
- One member cited by CPA Australia paid $22,000 to restructure a hotel holding.
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