In 2026 Federal Budget 2026 papers is an example of Kurt where he operates his business via a trust and earns $300,000 and pays himself a wage of $100,000 but then distrubutes the remaining $200,000 of income to 4 extended family members of $50,000 each. I'm concerned this example may give people the wrong idea.
I think this example of trust distrubution is actually illegal now. How does this distrubution that is provided by Treasury and Labor occur when Personal Services laws and a range of other taxation laws would actually prevent Kurt splitting his trust income like this already. What am I missing here? If it's in the Budget papers seems like the ATO must say that's ok but it's wrong. Using an already-illegal example to build the case for new legislation is, at best, sloppy policy work. At worst, it's deliberately misleading and should not the ATO correct this example? What I'd like to know is the example used in the those budget papers already unlawful.
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