Australia’s proposed 30% Minimum Taxes – Part 1 – Who is most affected and what might they cost a Small Business Owner?

Australia’s proposed 30% flat rate of minimum tax on most net indexed capital gains and discretionary trust distributions from 1 July 2027 and 1 July 2028 produces some surprising results regarding which resident individuals it does (or does not) adversely impact. Those with a >$229,320 personal taxable income will suffer no adverse additional tax effects. By contrast, many individuals with <$229,320 personal taxable income (including many small business owners) will ultimately bear the extra tax and cash flow costs from the new flat rate minimum taxes. Broadly, the lower the personal taxable income, the more adverse the potential outcome.

Click here to watch an online video of our animated flow chart summary.

Click here to watch an online video of a small business cash flow cost example.

Click here to read our detailed PDF download about the proposed tax rate change.

This is Part 1 of a 3-part series concerning the proposed 30% Minimum Tax. Further information is available on our Tax News page in Part 2 (Discretionary Trust Issues from Distributions to and from Companies from 1 July 2028) and Part 3 (CGT Minimum Tax Issues).