In a move that will surprise absolutely no one who has ever met a tax accountant, the Treasury has devised a workaround so small businesses can avoid the costly ordeal of becoming a company to dodge the planned 30% minimum tax on discretionary trusts. Discretionary trusts, the beloved structure of over 200,000 small businesses, were targeted in the May budget as a loophole to minimise tax - because apparently, the wealthy need yet another reason to weep into their chardonnay.
The changes, which don't kick in until mid-2028, had small business owners up in arms over the prospect of shelling out tens of thousands of dollars in state stamp duties and admin costs to restructure as companies to access the 25% small firm tax rate. But fear not, the draft legislation revealed today lets trusts convert to a fixed trust instead - because nothing says 'closing a loophole' like opening another one.
Treasurer Jim Chalmers, in a statement that could double as a soothing lullaby for anxious business owners, said the draft legislation builds on the July consultation paper and includes expanded options to limit or eliminate restructuring costs. One such option: discretionary trusts can be exempt from the minimum tax if they elect to make fixed distributions to pre-nominated beneficiaries, a move that requires no restructure and, shockingly, no stamp duties. The consultation period is open until 18 September, so mark your calendars for more thrilling tax news.
Meanwhile, in Victoria, Premier Ben Carroll held his fourth consecutive press conference about roads this week - because apparently, there's no such thing as too many ribbon cuttings. He announced a whopping $448m to upgrade roads in the western suburbs if re-elected in November, including $195m to widen Point Cook Road, $170m to widen Taylors Road, and $83m to double capacity at the Ballan Road and Bolton Road intersection. Carroll waxed poetic: 'Roads, roads and roads are such an important component of what I will do as premier. You don’t need to be a Rhodes scholar to know we need to invest in more roads.' Notably, each project is in Labor-held electorates that pundits say the party has taken for granted - Kororit, Sydenham, Point Cook, and Werribee. Because nothing says 'we value you' like asphalt.
In other news, KPMG's former chief operating officer, Eileen Hoggett, is suing the company after a parliamentary inquiry heard it sacked her for allegedly lying about sharing confidential client documents - part of the firm's audit leaks scandal. Hoggett filed a legal action in the NSW Supreme Court on Wednesday, with a first directions hearing set for 23 September. Her statement of claim remains under wraps, but last month she told the inquiry that confidential Lendlease documents 'were printed' and kept in her locker, though she couldn't recall printing or sharing them herself. She had previously denied the allegations, saying she believed she was answering honestly. The inquiry heard she sent a 2023 email suggesting showing a colleague 'the printed version in my locker … without letting too many people know [smiley emoji]'. KPMG expelled her after that email surfaced in July. Hoggett claims the new CEO, John Sams, called her while she was out walking, giving her 'no opportunity to be heard or to have any discussion', and she lost her entitlements, including accrued annual leave and retirement contributions. She's the only one sacked over the scandal, while other partners lost bonuses or resigned. KPMG declined to comment, presumably while hiding under a desk.
On the markets, Australia's shares are creeping higher, stabilising from a sharp sell-off as banks and miners counterbalanced weakness. The S&P/ASX 200 was up 22.6 points (0.25%) by midday Friday, with the All Ordinaries lifting 24.2 points (0.26%). Wall Street's positive lead helped, as worries about inflation and bond yields eased. The Aussie dollar was buying 71.66 US cents, up from 71.39 cents - because apparently, the currency needed a pick-me-up too.
NSW Police Commissioner Mal Lanyon says most of the state's recent organised crime is believed to be orchestrated from overseas, following two fatal shootings in Sydney's west that may be cases of mistaken identity. Lanyon told reporters, 'We believe the large majority of these organised crime offences are being orchestrated from overseas, but we know that there are people onshore who are facilitating and putting together the groups that are doing it.' He expressed 'great concern' over young people being recruited to carry out deadly offences for 'very little money', noting they'll face 'very lengthy consequences in jail'. The police are focusing on technology and encrypted communications, because apparently, the bad guys have better encryption than the good guys.
In wildlife news that sounds like a bizarre game of 'guess the species', a long-nosed fur seal, a common dolphin, and a black kite have tested positive for H5 bird flu in South Australia. The fur seal, found unwell at Beachport, was euthanised - the third confirmed case in the species. The common dolphin, found deceased at Arno Bay, is the second such case. The black kite was found on a private property on the Yorke Peninsula. New cases in metropolitan areas include a peregrine falcon at Novar Gardens and a silver gull at Leawood Gardens. Because 2024 just keeps giving.
Australia is deploying 'disaster victim identification specialists' to the Nepal-Tibet border, where floods have caused devastation. Foreign Affairs Minister Penny Wong acknowledged the anxiety of Australians with missing loved ones, saying, 'I know how difficult this is, and I accept that families want more information than can be provided.' She noted dedicated case officers are assigned to next of kin, and the government is working with the Australian Federal Police to support families through formal identification processes. Because in times of tragedy, bureaucracy is the best we can offer.
In happier news, Independent MP Alex Greenwich applauded advocacy efforts after the Minns government confirmed a new ferry stop in Sydney Harbour. The state will spend $5m to upgrade a pontoon to a ferry wharf over the next six months, ready for summer. Greenwich noted this is the third 'ghost' ferry stop reactivated by the NSW Labor government, following Balmain and Pyrmont. 'This stop will allow residents, workers, tourists and performers to travel to and from Walsh Bay via our beautiful harbour,' he said, providing a 'much-needed public transport connection to this important arts and cultural precinct.' Because nothing says culture like avoiding traffic.
Finally, Australians have donated $4m to flood relief efforts in Nepal-Tibet, which Foreign Minister Penny Wong called 'extraordinary'. The donations came through the Emergency Action Alliance (EAA), a group of 15 leading Australian humanitarian aid organisations, including Children Australia, Plan International Australia, and Oxfam Australia. Wong thanked donors, saying the alliance is providing critical shelter, water, sanitation, and healthcare. It's almost enough to restore faith in humanity - almost.