The growth of Trusts

Discussion in 'Legal Issues' started by Scott No Mates, 6th Apr, 2017.

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  1. Scott No Mates

    Scott No Mates Well-Known Member

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    Poached from the SMH - ssshhh! Don't tell anyone.
     
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  2. thatbum

    thatbum Well-Known Member

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    I actually think something should be done about trusts to limit their use as a tax minimisation structure.

    Curious to hear about what your thoughts might be @Terry_w ?
     
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  3. Ross Forrester

    Ross Forrester Well-Known Member

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    I remember going to a seminar in Sydney with Joe Hockey talking, as shadow treasurer, about how the government needed to review the taxation of trusts.

    It made front page news of the AFR and he retreated before the next day was over.

    https://goo.gl/TJLIcm

    Australian small businesses operate out of trusts. It would create massive upheaval.

    It creates a nice bit of media coverage whenever it is raised as an issue however.
     
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  4. kierank

    kierank Well-Known Member

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    One of the key questions here is "How many politicians use trusts?"
     
  5. bob shovel

    bob shovel Well-Known Member

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    Can they use trusts so they don't have disclose their assests publicly?
     
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  6. D.T.

    D.T. Specialist Property Manager Business Member

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    If it had a corporate trustee with spouse or family member as director, and it never donated to a political party, it'd prob fly well under the radar ?
     
    Last edited: 7th Apr, 2017
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  7. bob shovel

    bob shovel Well-Known Member

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    I'll need to know these things before I become El Presidente
     
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  8. kierank

    kierank Well-Known Member

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    You need to know before you buy any assets, otherwise you leave an audit trail ....
     
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  9. Scott No Mates

    Scott No Mates Well-Known Member

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    All - aren't they required to put all of their (investments) assets into blind trust upon entering parliament?
     
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  10. bob shovel

    bob shovel Well-Known Member

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    Isn;t that what the public do :confused:
     
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  11. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    As you know i am a trust nut. They are great for tax minimisation but as more and more use them less tax is paid and someone has to pay tax for this country to run.

    Not sure how they could be taxed though. If taxed like a company the same end tax result could happen. Trustee pays say 30% tax and then distributes income to the non-working 22 year old student who claims a franking credit to get the tax back. They would need to be taxed like companies without the franking for this to work.
     
  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I don't know the rules but think they have to declare all interests in trusts and other 'entities'.

    There is the 'blind trust' which is a trust set up for someone like a politician where the trustee holds assets and runs it but the beneficiary is prevented from knowing where the money is invested. This way the politician as beneficiary supposedly cannot be swayed by their own interests.
     
  13. kierank

    kierank Well-Known Member

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    +1
     
  14. Scott No Mates

    Scott No Mates Well-Known Member

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    Trust me, I'm a lawyer. :confused:
     
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  15. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I wish trusts were taxed like companies - Its a very simple fix.
     

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