25/08/2026
ACFA is supporting ACCI's national campaign against the proposed 30% minimum tax on discretionary trusts, and we're asking members to make their voices heard.
The Federal Government has proposed introducing a 30% minimum tax on discretionary trusts from 1 July 2028.
For many small and family businesses, discretionary trusts are not complicated tax arrangements. They are established business structures used for practical reasons, including asset protection, succession planning and managing family-owned businesses.
Through our work with the Australian Chamber of Commerce and Industry (ACCI), ACFA is supporting the Stop the Big Hit on Small Biz campaign and advocating for the Government to reconsider how this proposal could affect legitimate small and family businesses.
What could it mean for a small business?
ACCI estimates there are around 238,000 small businesses operating as discretionary trusts with business income, with a median net business income of just $74,700.
Under ACCI's modelling, a small business trust earning that median income could face an estimated additional $9,212 in tax each year.
For a family business earning $175,000 and distributing income between three family members, ACCI's example shows the additional annual tax could reach $26,236.
READ MORE AND HOW TO HELP US ADVOCATE FOR YOUR SMALL BUSINESS:
https://www.acfa.net.au/small-business-needs-a-voice-help-stop-the-big-tax-hit/