Shadow Treasurer Joe Hockey took Australia’s tax professionals by surprise yesterday when he suggested the Coalition would look at taxing trusts as companies.
Speaking at an Institute of Chartered Accountants conference, Hockey admitted that the idea was contentious but said it is “worthy of consideration” if Australia wanted to move towards a “simpler and flatter” tax system.
This comes nine years after a Board of Taxation review established by the Government ruled out the idea.
While this is the type of news that worries property investors, clearly there is no need to do anything different at present – there’s lots that would need to happened before trusts are taxed differently. I remember back in 1999 when the Howard Government considered trying to tax trusts as companies and nothing came of it a s the accounting profession and others fought hard to stop its implementation.
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