Crackdown on Family Trusts
The Federal Government wants to crack down on those who use family trusts to avoid paying income tax.
High-income earners who use trusts to split money to other family members in lower tax brackets would be charged 30% tax.
Tax agents H&R Block describe the benefits of a trust as: “From a tax perspective, the main advantage is that any income generated by the trust from business activities and investments, including capital gains, can be distributed to beneficiaries
in lower tax brackets (often spouses or children).”
Opposition Leader Bill Shorten says: “Every year in Australia there are some fortunate high-income earners who use discretionary trusts to park their money in a lower tax bracket. And the rest of the community are left to subsidise this.”
|