Politics · Australia · 1 hr ago
Greens seek inquiry into private school fees and Labor’s trust tax
Treasurer Jim Chalmers has introduced a bill for a 30 per cent minimum tax on some discretionary trusts in Australia.
These trusts can let owners shift money among family members or other entities, and the government says the tax targets their use to reduce tax bills.
The bill exempts some payments to charities and other tax-exempt groups, and some private schools have charitable status.
The Greens say this could let wealthy parents use trust money for school fees without paying the new tax, an option they say is not available to people without trusts.
The party is seeking a Senate inquiry into the proposed exemption and its votes are needed for the bill to pass the Senate.
Chalmers says the exemptions preserve reasonable arrangements for charities, while the Greens say they will consider the inquiry’s evidence before talking with the government.
The Greens say Labor’s proposed 30 per cent minimum tax on some trusts could let wealthy parents pay private school fees without paying the new tax.
The party wants the charitable-payment exemption examined and has called for a Senate inquiry into the bill.
The exemption could cover payments to private schools that have charitable status.
Labor needs Greens’ support in the Senate to pass the tax reforms.
Treasurer Jim Chalmers says the bill includes reasonable arrangements for charities and not-for-profits.
- Who
- The Greens, led on this issue by economics spokesperson Nick McKim, are challenging the bill. The government is proposing the tax.
- What
- The Greens say an exemption for payments to charities and other tax-exempt entities could let trust holders pay private school fees without the proposed 30 per cent minimum tax.
- When
- The bill was introduced to parliament on Wednesday, October 14, 2026. The Greens called for a Senate inquiry on Tuesday.
- Where
- Australia’s federal parliament.
- Why
- The Greens say the exemption could give wealthy trust holders a tax benefit unavailable to people without trusts. The government says the tax targets the use of trusts to reduce tax bills and that charities need reasonable arrangements.
The Greens
The Australian government
Exemption for charitable payments
The Greens
The exemption could let trust holders pay private school fees without paying the proposed 30 per cent minimum tax, and should be examined.
The Australian government
Charitable and not-for-profit exemptions reflect some current arrangements.
Impact of the proposal
The Greens
The Greens say wealthy people should not receive a tax break for private school fees that is unavailable to people who cannot afford expensive accountants.
The Australian government
Chalmers says the tax is a crackdown on using trusts to reduce tax bills.
The government indicated in a draft proposal that it would cap the amount of exempt money each year, but had not set the cap.
The Greens called for a Senate inquiry into the bill.
Chalmers introduced the legislation to parliament.
- Proposed minimum tax
- 30 per cent on some discretionary trusts
- Expected first-year revenue
- $4.5 billion
- Active small businesses using discretionary trusts
- 350,000 in 2022-23, roughly one in six
- Businesses Treasury says would not need to pay
- 140,000
- Senate support
- Labor needs the Greens’ support to pass the reforms
2 sources
What people are saying
People who are wealthy enough to set up trusts should not get a tax break to pay for private school fees when this option is denied to people who can't afford expensive accountants
It seems as if it will be possible for people with trusts to pay private school fees or donations to private schools, and not be subject to the 30 per cent minimum tax
We’ve tried to make sure that there are reasonable arrangements for charities, for not-for-profits, which reflect some of the current arrangements that are in place
the wrong message