Taxation, Goldmining Industry: McPhillamys Gold Project

Walker defended the trust tax reforms as measures to align the treatment of income from assets with income from work. Walker noted that numerous reviews had raised concerns about discretionary trusts, which have doubled in number over the past two decades. Walker stated that most trust earnings go to the wealthiest ten per cent of households and that income from primary production is not subject to the minimum tax. Walker argued the changes improve the fairness and sustainability of the tax system.

Kovacic argued that the trust tax targets everyday small businesses, including builders and tradies, rather than just wealthy individuals. Kovacic claimed the policy exacerbates the housing crisis by increasing costs for those constructing homes. Kovacic cited the Housing Industry Association, noting that many members operate through family trusts. Kovacic characterised the government's approach as an agenda to make homeownership less accessible for ordinary Australians.

Ananda-Rajah explained that the rise in discretionary trusts was driven by high marginal tax rates and represented significant tax leakage. Ananda-Rajah acknowledged that around 210,000 small businesses would be affected but highlighted government concessions to assist with restructuring costs. Ananda-Rajah stated that the government is consulting with industry groups and farmers to address concerns. Ananda-Rajah emphasised the need to raise revenue to meet rising demands on public services and infrastructure.

Gatenby criticised the government for lacking understanding of small business pressures, particularly regarding cashflow. Gatenby argued that the trust tax forces businesses into difficult choices between paying more tax or incurring legal costs to restructure. Gatenby also raised concerns about the impact of banning card surcharges and the ATO's decision to cease taking credit card payments for tax directly. Gatenby stated that these policies add uncertainty and costs to small business operations.