The Wire

$3.5 billion is missing from tax revenue each year due to the use of trusts as a tax minimisation strategy by wealthy Australians, according to a report released by The Australia Institute today.

The Institute says the amount of missing tax income from these trusts negatively impacts the government’s attempt to repair the deficit, as the amount is approximately equivalent to the budget for Agricultural assistance measures.

But others say there are good reasons to use them, such as providing protection for assets against bankruptcy or insolvency.