Daniel Mulino has dismissed claims that the federal government is watering down its proposed tax changes for discretionary trusts, insisting the reform package remains a substantial review aimed at restoring fairness to the tax system.
The proposed legislation seeks to impose a minimum 30 percent tax on discretionary trusts. Speaking on the policy, Mulino defended the timeline and scope of the reforms, noting they target a long-standing structural imbalance.
Targeting structural imbalances
We’re not watering this down,
Mulino said. This is a very substantial review. This is about fairness in our tax system. It’s about trying to better align the taxes that people pay when they earn income through trusts versus when they earn income from working, from providing their labour.
Decades of policy debate
According to Mulino, structural adjustments to trust taxation have been debated by public policy experts for decades. He pointed to major government tax reviews dating back to the 1970s, through the Howard government, the Henry review, and the Abbott government, as prior instances where similar changes were called for.
Pressure on the Liberal opposition
I think he’s getting that from lots of corners,
Mulino said regarding the pressures facing the opposition. People are saying that the Liberal party needs to do better. The polls are showing that the Liberal party is at an all-time low. And so, things have to change. Because there’s something existential about the threat that I think the party now faces.
Timeline and the 18-month horizon
Despite the looming political contest, the federal government has not locked in an exact timeline for every procedural step of its legislative agenda. Look, I certainly haven’t closed the door, but I don’t need to rush to a decision,
Mulino said. The next election is 18 months away.
