Bracksy's Tax Grab

[Andrew]

Many of you may have seen this article in the paper recently, I hadn't heard
before this that Bracks was going to make a grab into the pockets of trustees.

Apologies if this has been discussed before, I have scanned through all the
articles in the Accounting & Tax section and didn't see anything related.

Experts, what is the response to this? Is it possible to go to a three tiered
structure: company 1 as trustee for FT which owns company 2 which owns
land and is taxed under the much less punitive company rates of land tax?

Is the answer to establish your trust in another state?

This is really scary, the conventional wisdom was that all the politicians use
trusts so they wouldn't make changes that would punish their own holdings.

andy

 

[Peter 14.7]

Having just made an offer to buy in Vic I am putting it in my wifes name but the income comes via the FT.

In NSW both Company and Trust get hit up ( mind you the rules are always changing).

Very unfair for those already holding in Trusts.

Peter 147

 

[Andrew]

bump... note to self, don't start threads on Sunday.

andy

 

[tubs]

I have sent an email (this afternoon in fact) to my local state MP asking for clarification, and saying how unfair this is. I will post the reply when (if) I get one.

If it looks like trusts will be treated differently, everyone PLEASE complain. After all, even if you're not in Victoria, they're all Labor governments in the states, so make sure it doesnt happen to you.

Tubs

 

[tubs]

OK, here is the reply from Ian Tresize, Member for Geelong:
"
I note your concerns and am aware of the issue through the media. I am of
the understanding, after listening to John Brumby ,that this is a draft
discussion paper drawn up by the State Taxation Office addressing a lot of
tax related issues and is far from the final position.
"

Regards
etc etc

If it concerns you, PLEASE email your local member. Unless, that is, you WANT to pay thousands of dollars extra a year.....