Business Owner Opposes Proposed Trust Tax Hike

A restaurant operator has written to the Prime Minister citing rising costs and concerns over new tax legislation.

Updated on Oct. 15, 2026 in Financial Planning

Business Owner Opposes Proposed Trust Tax Hike

Live Poll

Do you believe the proposed tax on family trusts places an unfair burden on small businesses?

An Australian small business owner has published an open letter to the Prime Minister opposing the government's proposed 30 percent minimum tax on family discretionary trusts. The legislation aims to address income tax subversion but has raised alarms about reinvestment and staffing sustainability.

Why it matters

The Treasurer argues the 30 percent minimum tax targets legal structures used to bypass the tax system, while business owners contend it limits their ability to maintain employment. The move could significantly shift the financial landscape for family-run enterprises across the country.

The proposed 30 percent minimum tax applies to discretionary trust income, with exclusions for charitable and disability trusts. Meanwhile, small business owners report surging operational costs including a 102 percent increase in water fees and 34 percent rise in wage bills.

The players

Aurora Klimowicz

She is the owner and operator of the Angel Sussurri Restaurant and Manor House located in the Yarramalong Valley.

Prime Minister of Australia

This official serves as the head of the Australian federal government and the primary recipient of the open letter regarding trust taxation.

The details

Aurora Klimowicz, who operates the Angel Sussurri Restaurant and Manor House, argues that the tax hampers her ability to reinvest in the business and support her 19 employees. The legislation would require beneficiaries with tax rates above 30 percent to pay additional tax, while those below that threshold would forfeit excess credits.

2017: Aurora Klimowicz purchased the Yarramalong Manor property.
May 2026: The federal government announced the trust tax plan in the budget.
15 October 2026: The open letter to the Prime Minister was published.
1 July 2028: The proposed 30 percent trust tax is scheduled to take effect.

Market Dynamics

This opposition highlights broader tensions regarding the Australian federal budget's 30 percent minimum tax on family discretionary trusts. The move marks a significant departure from current tax structures, forcing family-run businesses to re-evaluate long-term operational sustainability.

The proposed tax may require families with discretionary trusts to restructure their holdings to avoid unintended tax liabilities. Those whose beneficiaries fall below the 30 percent threshold should monitor how losing excess credits impacts their total annual tax burden.

The takeaway

Small business owners facing rising operational costs, such as increased food and water expenses, are increasingly vocal about fiscal policy changes. Review your current trust structures now to understand how potential legislative changes could impact your family's financial planning strategies before 2028.