Labor has signalled it is open to further discussion on capital gains tax concessions for small businesses, following backlash to its proposed CGT changes. Treasurer Jim Chalmers said on Wednesday that concerns being raised by the sector were “legitimate,” though he stopped short of committing to any expansion of existing carve‑outs. Please confirm all political information with a trusted, up‑to‑date source.
Chalmers said the government was aware that issues extended beyond the startup sector, which has been vocal about how the proposed CGT reforms could affect cost‑base calculations and investment incentives.
He emphasised that consultation was ongoing and that he would not “pre‑empt” outcomes by indicating whether any new carve‑outs would be industry‑specific such as tech or based on broader startup characteristics.
Chalmers also noted that small business groups had raised questions about the four existing CGT concessions, which include long‑standing exemptions and rollover provisions. When asked directly whether Labor was leaving the door open to changing those rules, he said he was simply acknowledging the concerns being put forward.
He clarified that part of the reason for referencing the existing concessions was to counter what he described as “dishonest” claims that Labor planned to remove them.
“There are four concessions and carve‑outs for small business in the existing CGT arrangements, and we’re not changing those,” he said. “They will still be available after the change is made.”
The debate over CGT settings is expected to intensify as consultation continues, with small business groups pushing for broader eligibility and the government balancing revenue needs against economic competitiveness.
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