When tax reform moves faster than it thinks, traps will appear and adverse reactions follow.
This week on Exchanges, we sit down with John Storey, Tax Counsel at The Tax Institute and one of Australia’s most experienced tax lawyers and public policy advocates.
The big topic: Australia’s recent tax changes and the rushed reform process on discretionary trusts. John unpacks what these changes actually mean for small businesses and investors and whether a system already straining under its own complexity can absorb yet another layer of reform without serious consequences and massive cost implications.
From the unintended impacts on family businesses to the broader questions about how tax policy gets made in this country, John has an insight on this issue like no other.
To Follow John click here:
Website: https://www.taxinstitute.com.au/about-us/tax-policy-advocacy/john-storey
LinkedIn: https://www.linkedin.com/in/john-storey-a1865468/?isSelfProfile=false
Chapters
01:03 The compressed consultation process and its impact
03:38 Why the minimum trust tax is a major change
06:22 Trusts versus corporate structures under new rules
08:11 Timing and uncertainty for trust owners
09:17 Justification for the 30% baseline tax rate
11:37 Impact on middle-market small businesses
15:31 Legislative changes and the lock-in of beneficiaries
16:54 Restructuring challenges and government relief measures
18:34 The irrevocable election and its consequences
20:39 Rapid policy changes and legislative rollouts
22:07 The influence of politics and Treasury in policy design
24:46 The role of Treasury and policy piecemeal approach
28:14 Future reform prospects and the need for systemic overhaul
32:41The case for a simpler, more efficient tax system
36:49 John’s vision: abolishing tax concessions for a leaner system
","author_name":"Evan Lucas"}