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Albanese Government Reverses Course on CGT With Major Carve-Outs

The change signals a political reset to preserve incentives for small businesses, startups, and testamentary trusts, with the government seeking fast Senate approval.

Shadow Treasurer Tim Wilson has claimed budget backlash could cost Albanese and Chalmers their political futures, in a heated clash with Health Minister Mark Butler.
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Australia's Prime Minister Anthony Albanese gestures during a press conference, in Sydney, Australia, June 18, 2026. REUTERS/Hollie Adams
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Overview

  • The government announced on Thursday that it will raise the turnover threshold for the 50% active-asset small‑business CGT concession from $2 million to $10 million so many more businesses keep the existing discount.
  • A new, targeted CGT concession for innovative start‑ups is being designed by consultation so founders, early investors and employee share scheme participants can retain comparable tax relief.
  • The plan exempts discretionary testamentary trusts established for genuine testamentary purposes from the proposed 30% minimum trust tax while the government develops integrity rules to stop misuse.
  • Treasury ministerial powers originally written into the bill have been narrowed and more detail will be placed in legislation, though many technical rules and eligibility tests remain unresolved and open to consultation.
  • The carve-outs are costed at about $475 million over the forward estimates and the government is pressing to pass the amended bill through the Senate quickly, but industry groups remain critical and further negotiation is expected.