The federal government has announced changes to its proposed capital gains tax overhaul, expanding concessions for small businesses and introducing new incentives for startup founders, employees and early investors.
Australian Prime Minister Anthony Albanese and Treasurer Jim Chalmers said the 50 per cent capital gains tax discount for small businesses will be extended to those with annual turnover of up to $10 million, up from the current $2 million threshold.
A new concession for startups will also be introduced, with founders, employees and early-stage investors to receive an additional 50 per cent discount, or an alternative inflation-linked concession, depending on further consultation outcomes. The details are yet to be finalised.
“The next steps that we announce today are all about providing more clarity and confidence to investors, more support for small businesses and more incentives for innovation,” Chalmers said.
“We understand that there’s never a unanimous view about economic reform and particularly about tax reform. It’s always contested, it’s always contentious. But it will be worth it. We are delivering real change here.”
The government said the changes follow consultation with the startup and small business sectors, which had raised concerns the original proposals would discourage investment and innovation.
Labor also confirmed adjustments to its broader tax package, including changes to proposed rules affecting discretionary testamentary trusts under a new 30 per cent tax, following concerns they could function as a “death tax.”
The government said it will continue refining elements of the legislation, with further amendments expected in the next parliamentary sitting fortnight as it seeks to progress the reforms.
Source: ABC.
