2026-10-13
The Greens will move for a Senate inquiry into the proposed reforms to the taxation of discretionary trusts, warning that Labor risks squandering an opportunity to make Australia's tax system fairer.
"In classic Labor fashion, the government has managed to water down its own position before the legislation has even reached Parliament,” Australian Greens Economic Justice spokesperson Senator Nick McKim said.
"These reforms appeared to be mildly positive when they were first announced, but there is a real risk that Labor’s political cowardice is transforming them into yet another missed opportunity.
"Australia's tax system is riddled with loopholes that overwhelmingly benefit the wealthiest 1%. Discretionary trusts are one of the ways wealthy people minimise their tax while workers pay more than their share.”
Labor's original proposal to reform the tax treatment of discretionary trusts has been weakened by a series of subsequent concessions, raising questions about how effective the legislation will be in closing tax loopholes exploited by wealthy Australians.
A Senate inquiry will be able to examine the impact of Labor's concessions, and whether the legislation goes far enough to address the rampant inequality in Australia's tax system.
"We want to know exactly what the impacts are of Labor once again collapsing under pressure from vested interests,” Senator McKim said.
"The Greens want genuine tax reform that makes wealthy Australians pay their fair share. We won't give Labor a free pass on legislation that falls short of that objective."