Overview
- The government will introduce an omnibus tax bill to the House this Thursday that links a $250 Working Australian Tax Offset and a $1,000 standard deduction to a plan that replaces the 50 percent CGT discount with an inflation‑indexed method and narrows negative gearing.
- Treasurer Jim Chalmers and Prime Minister Anthony Albanese have opened broader consultations with startups and all small‑business groups but say any exemptions will be limited and final implementation details will follow after initial legislation.
- Industry groups, venture capitalists and bank chiefs warn the CGT change could weaken employee equity incentives, prompt investors to pause funding rounds, and push founders and capital offshore unless targeted carve‑outs are made.
- The Coalition has pledged to oppose the package, meaning Labor will need support from the Greens in the Senate to pass the laws; Labor plans to legislate the main changes first and settle carve‑outs in a second tranche.
- The 50 percent CGT discount has been in place for decades and small‑business CGT thresholds have not been updated since 2007, which fuels demands to lift eligibility caps (proposals include turnover up to $10m and net assets up to $12m) and shapes the political and economic stakes of the reform.