THE Housing Industry Association (HIA) is warning that small businesses across Australia are facing mounting pressure from the combined impact of rising costs, economic uncertainty and an increasing number of regulatory and tax changes.

The proposed minimum 30% tax on discretionary trusts risks becoming the latest addition to a growing list of changes that are increasing costs and complexity for small businesses.

HIA chief executive for industry and policy, Simon Croft, said the key challenge for small business was that policy changes were too often assessed individually, rather than through the lens of their cumulative impact.

"Small business owners don't experience each policy change in isolation. They experience them all at once and together," Mr Croft said.

"Businesses are already dealing with rising operating costs, workforce shortages, economic uncertainty and softer trading conditions in many parts of the economy.

"At the same time, they are being asked to adapt to a growing range of regulatory and workplace changes. Whether it is additional payroll obligations, minimum wage increases, superannuation changes, credit card payment reforms or tax measures, every new requirement adds another layer of administration, compliance and cost."

Mr Croft said the proposed minimum tax on discretionary trusts is the latest example of a reform that needs to be considered in the context of the broader operating environment facing small businesses.

"Viewed in isolation, any one reform may appear manageable. But for a small business owner trying to run a business, employ staff and serve customers, it is the accumulation of all these changes that creates pressure.

"HIA estimates around three in five members operate through discretionary trusts. These are predominantly small and family-owned businesses including builders, tradespeople and contractors," Mr Croft said.

"The proposed trust tax would represent another cost and compliance burden for businesses that are already navigating significant economic and regulatory challenges, and disproportionately impact smaller businesses."

Mr Croft said small businesses continued to be the backbone of the housing industry and the broader economy, taking risks, investing capital, employing workers and training the next generation of skilled tradespeople.

"Every additional layer of compliance takes time away from running a business and getting on site building homes," Mr Croft said.

"Business owners consistently tell us they are spending more time dealing with paperwork and regulatory obligations and less time being on site delivering homes training their employees and growing their business.

“If governments are serious about improving productivity, increasing housing supply and supporting small business investment, they need to better understand the cumulative impact of the decisions they are making.

"HIA's concern is not just with one proposal. It is with the layering effect of multiple policy changes that, taken together, make it harder to operate a small business in Australia,” Mr Croft said.

www.hia.com.au

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TODAY, Tony Zappia MP, Chair of the Parliamentary Standing Committee on Public Works, presented the Public Works Committee’s sixth report of 2026 to the House of Representatives.

Report 6/2026 – Referrals made in May, June, and August 2026 considers five proposed major works:

• Australian Nuclear Science and Technology Organisation—Campus Utilities Building Project, Lucas Heights;
• Department of Defence—Facilities to Support Air Mission Training System Project [East Sale, Victoria];
• Department of Employment and Workplace Relations—Proposed Fit-out of New Leased Premises at London Central, 40-60 London Circuit, Canberra City;
• Department of Defence—Facilities to Support AIR 6500 Integrated Air and Missile Defence Command and Control (Package 1) – RAAF Base Darwin, Northern Territory; and 
• Australian Taxation Office—Proposed Fit-out of New Leased Premises, Festival Tower 2, King William Road, Adelaide.

The committee has recommended that the House of Representatives approve each of the proposed works, with one additional recommendation relating to the Australian Taxation Office’s broader property management processes.

Mr Zappia said, "The works considered by the committee on this occasion are necessary and agencies have demonstrated that their proposals represent value for money for the Commonwealth.

"In relation to the proposed fit-out works by the ATO in Adelaide, the committee heard during its inquiry that some people within the Adelaide community have concerns around the appropriateness of the Festival Tower 2 development. That development, however, is a matter for the South Australian Planning Commission and the Committee does not express an opinion on it," he said.

"While the committee is recommending expediency be granted by the House of Representatives for these proposed works, over the course of this and other recent referrals from the ATO, the committee has developed concerns regarding the ATO’s overall approach to the identification of new sites and its exit strategies from leases of existing sites.

"For this reason, the committee is additionally recommending that the Auditor-General considers conducting an audit into the management and administration of the ATO’s property portfolio, lease arrangements and location strategy," Mr Zappia said.

Background on the proposed works

The Australian Nuclear Science and Technology Organisation (ANSTO) is proposing to replace the existing Low Voltage (LV) backup power network at its site at Lucas Heights, NSW, with a new, centralised High Voltage (HV) backup power network. The proposed works will address issues associated with the ageing existing system, including long lead times, technical obsolescence and increasing repair cost, and misalignment of the existing system with the future needs of the campus. The proposed works do not affect ANSTO’s OPAL multi-purpose reactor, which operates on a separate dedicated power network. The estimated cost of the proposed works is $31.02 million (excluding GST).

The Department of Defence is proposing works for the Air Mission Training Support project at the Royal Australian Air Force (RAAF) Base at East Sale, Victoria. The proposed works will deliver necessary infrastructure to support the training of future Air Force personnel, including mission controllers, mission aircrew, operations officers, and air traffic controllers. The proposed infrastructure will allow Defence to utilise new simulation systems, training techniques and additional trainee throughput. The estimated cost of the proposed works is $130.8 million (excluding GST).

The Department of Employment and Workplace Relations (DEWR) is proposing to fit-out 46,389 square metres of new leased premises at London Central, 40-60 London Circuit, Canberra City. The new premises will allow DEWR to consolidate staff from its existing five leases into one, accommodating approximately 4,393 staff from DEWR and the Department of Education. The estimated cost of the proposed works is $153.5 million (excluding GST).

The Department of Defence seeks parliamentary approval to deliver fit-for-purpose facilities and infrastructure at RAAF Base Darwin to support the AIR 6500 Integrated Air and Missile Defence Command and Control capability. The proposed works address investment priorities under the 2026 National Defence Strategy and the 2026 Integrated Investment program by providing facilities to support the Australian Defence Force’s air and missile defence capabilities. The work elements to be delivered include a new Operations Support Facility with secure briefing rooms, training rooms, working accommodation and maintenance and operational warehouse facilities, new vehicle shelters, and the upgrade of existing infrastructure to support additional buildings within the Base. The estimated cost of the proposed works is $299.1 million (excluding GST).

The Australian Taxation Office (ATO) seeks parliamentary approval to undertake a fit-out of 19,000sqm across 11 floors of new leased premises at Festival Tower 2 in Adelaide City. The new accommodation will allow the ATO to reduce its office footprint in Adelaide from 31,488sqm to 19,000sqm and meet the Federal Government’s occupational density target of no more than 14sqm per occupied workpoint. The estimated cost of the proposed works is $73.4 million (excl. GST).

Note: the Parliamentary Standing Committee on Public Works is not involved in the tendering process, awarding of contracts or details of the proposed works. Enquiries on these matters should be directed to the relevant Commonwealth entities.

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THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) has today presented to the Parliament an advisory report for its Review of the Australian Criminal Intelligence Commission (ACIC) reform package 2026.

The reform package consists of the Australian Criminal Intelligence Commission Bill 2026 and the Australian Criminal Intelligence Commission (National Policing Information Charges) Bill 2026. The bills would establish the ACIC under a new Act, clarifying its role and enhancing its ability to obtain, analyse, evaluate and communicate intelligence relevant to serious and organised crime.

The PJCIS supports the passage of both bills, subject to 25 recommendations aimed at strengthening safeguards and ensuring a smooth transition to the new legal framework.

Chair of the PJCIS, Senator Raff Ciccone, said, “Serious and organised crime causes extensive harm to the Australian community. The ACIC is a key agency tasked with enhancing Australia’s response to this threat by collecting and communicating intelligence relating to serious and organised criminal activities.

“The committee supports these reforms, which will help clarify the ACIC’s mission and ensure its legal framework is appropriately adapted to its task. The committee has recommended amendments to improve clarity, accountability, oversight mechanisms and other safeguards, particularly in relation to the ACIC’s coercive powers.

“These recommendations will help ensure the public can have confidence that the reform package provides the right legislative settings for the ACIC’s long-term future and that the ACIC’s extraordinary powers are used only as intended to help keep Australians safe from serious and organised crime.”

The full report and further information about the inquiry are available on the committee’s website: aph.gov.au/pjcis

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THE Family Business Association (FBA) has welcomed the Senate inquiry into the proposed minimum tax on discretionary trusts and is calling on the Senate Economics Legislation Committee to publish the economic modelling and regulatory impact statement, and to consult family businesses of all sizes.

The Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and its companion rates bill were referred to the committee on October 15. Submissions close on October 29 with hearings on November 5 and 6.

FBA CEO Catherine Sayer said the inquiry will be the first public test of the proposed system. FBA has sought the modelling since May, but two rounds of Treasury consultation have passed without it and the Senate is now being asked to vote on a $4.5 billion tax on figures nobody outside Treasury has seen. Ms Sayer said.

The FBA’s position is that two weeks is too short to examine a measure of this size, given its long-term effects on the economy and community.

The FBA's position is that the Senate Economics Legislation Committee must publish the economic modelling and regulatory impact, and consult the families of all sizes that the tax will hit.

"Since May we have asked the government to show us the modelling," Ms Sayer said. "Two rounds of Treasury consultation have come and gone without it, and the Senate is now being asked to vote on a $4.5 billion tax on figures nobody outside Treasury has seen," Ms Sayer said.

"Two weeks is a short time to examine a measure of this size. It is a critically important issue that should not be rushed. It is going to have long-term impacts on the economy and community and needs to be carefully considered "

Ms Sayer said the committee's first question was what the sector looks like once the current generation of owners has handed over.

"This is not a tax on this year's profit," she said. "It decides whether the next generation takes the business on or sells it. That question has not been asked, let alone modelled.  We do not want to look back in 10 years’ time and wonder what has happened to all the family businesses in Australia."

Ms Sayer said the bill also did not work for a family that runs a business through a trust today.

"The 30% is a floor, not a rate," she said. "The election locks a family's distribution split for life and cannot be used to keep profit in the business for a new truck or a new press brake. No trust formed after July 1, 2028, can elect at all. And the restructure path relies on stamp duty relief that is still unclear that the states will give.

"Stacked on the increasing cost of doing business, productivity challenges, increasing compliance costs, the recent card surcharge ban and the stamp duty question along with the enormous cost to restructure, small and family businesses face death by a thousand cuts. These businesses employ half the Australian workforce."

FBA will lodge its submission by October 29 and will seek to appear before the committee.

Family Business Association is the peak body for family businesses in Australia. Around 70% of Australian businesses are family businesses and they employ around half the workforce.

www.familybusiness.org.au

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