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New Carve-Outs Revealed for Startups After Tax Backlash
Labor will keep the 50% capital gains tax discount for more small firms and startups, a reversal that affects about 2.7 million businesses.
- On Thursday, Prime Minister Anthony Albanese and Treasurer Jim Chalmers announced expanded capital gains tax exemptions for small businesses, increasing the active asset turnover threshold from $2 million to $10 million.
- Intense backlash from startups and entrepreneurs prompted the concessions, as they argued the government's initial proposal to scrap the 50% discount in favor of inflation indexation would stifle productivity and punish small businesses.
- Treasury will also exempt discretionary testamentary trusts from the proposed 30% minimum tax and allocate $3.5bn to support business risk-taking, including loss refundability for startups.
- Opposition Leader Angus Taylor dismissed the changes as inadequate, calling for the entire budget to be scrapped, while Labor seeks Greens support to pass legislation by July 2.
- Government officials will wind back ministerial discretion powers following criticism from Greens senator Nick McKim, whose support is essential for passing the tax changes through the Senate.
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Labor Amends Tax Overhaul Amid Backlash From Small Businesses, Start-Up Community
The Labor government has announced changes to its tax overhaul amid a storm of opposition from business owners, accountants, charities, tech start-ups, and the medical technology field. On June 18, the government said it would make “targeted amendments” to the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026, which has already passed the lower house and is currently subject to an ongoing Senate inquiry. The Bill originally contained major …
·New York, United States
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Coverage Details
Total News Sources23
Leaning Left7Leaning Right5Center2Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
14%
R 36%
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