Comments from members
Who operates Family Trusts:
“The vast majority of family trusts are operated by Tradies, farmers, shopkeepers, professionals and retirees”.
“Given that about half of all small businesses fail in the first five years, Family Trusts are typically used to protect the assets of business owners in the event business failure”.
“Family Trusts are also extensively used in the Agricultural community to protect multi-generational assets”.
“With suicide rates amongst 50 years+ small business owners (and Agricultural communities) at an all-time high, changes that remove the opportunity for asset protection of small business owners are morally reprehensible”.
“Family Trusts are also used by the elderly for administration of self-managed super funds”.
“So, how does Labour propose to address the minority issues with Family Trusts while guaranteeing that the majority who are using them appropriately are not adversely impacted?”
“This proposal will negatively impact builders, electricians, carpenters, shop keepers, farmers professionals and retirees – not the rich who, quite frankly, will just find another way to avoid paying tax”.
Fairness
“While a small number may be used by the very wealthy end of town for tax minimisation (say 5%), this proposal will impact 100% of trusts. Hitting 100% of family trusts, solely to correct the actions of 5%, is hardly fair”.
“If the Australian Labor Party wants to correct the behaviour of the 5% or so who are abusing Trust structures then they should look at the Tax system as a whole – and COSBOA would support them on this”.
“Alternatively, Labor could ask the Australian Tax Office to conduct a review of suspect trusts with respect to income splitting practices and then use the findings to determine whether we really have a problem or not”.
“Attacking small business through changes to the family trusts is grossly unfair, particularly given that large corporations and unruly Unions (e.g. CFMEU) pay zero tax.
“This is clearly just a case of the Labour Party going after hardworking small business owners (including Tradies, farmers and shopkeepers) because they are a ‘soft target’ - and don’t have the money or the time to defend themselves, while big business and big unions continue to minimise their taxes without consequence”.
Concluding remarks
“We have a problem in our society if we, as Australian’s, believe that that people who work hard to build wealth by taking risks should not be able to reap the benefits of that hard work”.
“Increasing the wealth of wage earners by reducing the wealth of those who employ Australians is not Fair – and nor is it Australian”.
“The Australian Labour Party needs to go back to the drawing board on this one”
