Another tax, fewer homes: HIA
The HIA has warned Treasury that a proposed minimum tax on discretionary trusts will reduce housing supply, contradicting the government's own housing targets.
Will the new minimum tax on discretionary trusts affect my building business?
Builders and contractors operating through discretionary trusts could face higher tax burdens, raising construction costs and reducing new housing projects.
Key takeaways
- HIA has submitted to Treasury opposing a proposed minimum tax on discretionary trusts.
- The HIA says the tax contradicts the Albanese government's housing supply goals.
- Builders using discretionary trust structures could face increased tax obligations.
- Higher costs from the tax may reduce the number of new homes being built.
Related
ATO ramp up of small business debt collection
Master Builders Australia has published a news item saying the ATO is stepping up its debt collection against small businesses. The text provided gives no further detail on the measures, timing or amounts.
Why it matters: Builders and other trade businesses with outstanding tax debts may face firmer ATO collection action, which could strain cash flow. Details are not in the source text, so check the ATO or Master Builders directly.
Construction needs an effective enforcer not a paperwork obsession
The Housing Industry Association (HIA) warns that proposed national construction standards and new procurement rules miss the mark. It says the measures land hardest on home builders and argues for an effective enforcer rather than more paperwork.
Why it matters: Home builders and small residential contractors could face extra compliance paperwork and procurement requirements, adding admin time and cost to jobs without necessarily lifting building quality.
Potential Commonwealth Standards for the Construction Industry
The Housing Industry Association (HIA) says it backs a lawful, safe, productive and sustainable construction industry and has long called for structural reform. It says the consultation on potential Commonwealth standards proposes several measures it is concerned about.
Why it matters: Commonwealth standards could add new compliance requirements for builders and subcontractors across residential construction. The article gives no detail yet, so the practical impact on trades is unclear.