Minimum trust tax a new tax on tradies
The Housing Industry Association says the Federal Government's proposed minimum tax on family trusts would work as a new tax on tradies, builders and small family businesses. It also warns the change would create costly complexity.
How will the proposed minimum tax on family trusts affect my tradie business?
Builders, carpenters and other tradies who run their business through a family trust could face a higher tax bill and extra compliance costs, which would squeeze cash flow and profit margins.
Key takeaways
- The HIA says the proposed minimum tax on family trusts is effectively a new tax on tradies.
- The proposal is a Federal Government measure that targets family trusts.
- Builders and small family businesses that operate through trusts could be affected.
- The HIA warns the change would add costly complexity for small businesses.
Related
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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
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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.