The linking of the four elements sets up a political wedge for the Coalition which had vowed to oppose tax increases, but planned to support the $250 offset.<\/p>\n
Prime Minister Anthony Albanese said he expected the tax bill would go to the Senate later in June, with Labor then intending to revisit “implementation” of the CGT changes at a later date after consultation with business groups.<\/p>\n
What Labor’s tax changes really mean for you<\/a><\/p>\n Labor’s capital gains tax changes have set off a firestorm of debate about the implications for small businesses, start-ups, share owners and plenty more. Here’s who will really pay more.\u00a0<\/p>\n In the two weeks since unveiling the plan to replace the 50 per cent CGT discount with one indexed to inflation, senior Labor figures have indicated any carve-outs or exemptions would be tightly restricted to the tech startup sector<\/a>.<\/p>\n But business groups have warned the selective application of carve-outs “here and there” would be “wholly inadequate”.<\/p>\n Mr Albanese announced on Monday that Labor would consult with small business groups to develop a position paper ahead of a second tranche of legislation dealing with CGT carve-outs, sparking optimism he had left the door open to broader exemptions.<\/p>\n However, Labor sources have continued to manage expectations with private warnings about the likely narrow scope of any carve-outs.<\/p>\n Businesses want ‘complete reset’ on CGT proposal<\/p>\n Business groups have argued Labor’s proposed CGT changes would discourage investment and entrepreneurship by increasing the tax paid when a company is sold, potentially pushing investment and talent offshore.<\/p>\n Australian Chamber of Commerce and Industry chief executive Andrew McKellar said rather than focusing on carve-outs the entire notion of damaging the business community should be rejected.<\/p>\n “We are concerned carve-outs here and there would be wholly inadequate,” he said.<\/p>\n “What is needed is a complete reset.”<\/p>\n Andrew McKellar has urged the government to take a pause. (ABC News: Matt Roberts)<\/p>\n Mr McKellar said the legislation should be paused to “avoid unintended consequences” for businesses until the consultation was complete.<\/p>\n “There is no need to introduce legislation that is damaging to business and rush it through parliament,” he said.<\/p>\n “We are all in favour of tax reform, but it has to be reform that benefits the economy, and you don’t do that by taxing business investment.”<\/p>\n Business Council of Australia chief executive Bran Black said he remained concerned the proposed CGT and negative gearing changes made an “already uncompetitive tax system less competitive” at a time the country was “fighting hard” to attract investment.<\/p>\n![\"a](\"https:\/\/www.europesays.com\/australia\/wp-content\/uploads\/2026\/05\/aa7a914a692a525c6247cc54d36af3f6.jpeg\")
<\/p>\n
![\"An](\"https:\/\/www.europesays.com\/australia\/wp-content\/uploads\/2026\/05\/754f267f418a9d6b9a787dc7599d81a0.jpeg\")
<\/p>\n