Australia exempts small business trusts from stamp duty in tax reform tweak

Treasurer Jim Chalmers has unveiled new tweaks to Australia's budget tax reforms, exempting small business family trusts from state stamp duties if they make fixed distributions to beneficiaries, marking the third round of changes to the proposed measures. The adjustments follow warnings that the reforms could impose significant tax hikes or stamp duty costs on small businesses, and come after earlier changes to protect widows and divorced partners from capital gains tax and negative gearing issues. The government has also exempted distributions to charities and certain trusts, including those for primary producers and deceased estates. The changes aim to balance the tax system while preserving the projected $4.5 billion revenue boost in 2029-30, though industry groups remain divided. Consultation on the proposals is open until September 18, with some experts criticizing the short timeframe for such complex reforms.