Today’s scare campaign by Josh Frydenberg to protect the tax concessions of the wealthiest Australians has turned into another Liberal Party own goal.
Professor John Glover (RMIT), one of the authors of the recent report commissioned by the Australian Tax Office ‘Current Issues with Trusts and the Tax System’
has stood by the report today, saying on Australia’s much needed trust taxation reform “The rest of the world has moved on, but we still have that very old method of taxing trusts."
The article posted online
today by the ABC details the report which found that misuse of trusts has been potentially costing the Budget billions of dollars through tax avoiding “income tax shuffles” including income splitting via beneficiaries.
Under the Liberals, multinationals and millionaires aren’t paying their fair share of tax.
Labor’s reforms to the taxation of trust is simply an extension of John Howard’s work as Treasurer, in seeking to apply a minimum standard tax rate of 30 per cent to discretionary trust distributions to beneficiaries over 18 years of age.
This Treasurer is ignoring the experts and facts when it comes to critically needed reform to benefit the country, preferring a shrill political scare campaign to defend the wealthy.
Only Labor will close down tax loopholes that overwhelmingly benefit the top end of town so we can pay for better schools and hospitals for all Australians.