Small Business
Background
Wilson Asset Management estimated small businesses face up to $13.3 billion in fees to restructure due to government changes to discretionary trust taxation.
Question
The member asked why the government was imposing significant financial burdens on small and family businesses through its tax reforms regarding discretionary trusts.
Includes 2 supplementary questions.
Answer from Penny Wong
The minister stated that the number of small businesses had increased since the government took office. She noted that over 90 per cent of small businesses would not be affected by the changes. For the minority using trusts, the government planned to provide rollover relief to facilitate restructuring into companies or fixed trusts during a transition period involving consultation. In response to supplementary questions regarding the $4.5 billion revenue projection and costs to businesses, the minister highlighted $3.8 billion in fresh tax relief for businesses and reiterated the availability of rollover relief. She declined to scrap the reforms, citing broader tax cuts for working Australians.
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