Businesses unite to fight capital gains tax changes
As controversial budget measures come under the spotlight, business groups argue changes to capital gains tax will reduce productivity and make Australia less competitive.
A. Senate investigation The first hearing on the tax changes will be held on Monday.
Under the changes, the 50 per cent relief for capital gains tax will be replaced by a rate linked to inflation and a minimum of 30 per cent, while negative gearing will be limited to new homes only from July 2027.
In a joint statement issued ahead of the inquiry, business groups warned that the changes were rushed and would deter investment.
Australian Chamber of Commerce and Industry, AI Group, Australian Business Council and The Australian Council of Small Business Organizations said the changes should be rejected.
“At a time of increasing global competition, Australia cannot afford policies that will make us a less attractive investment destination,” he said in a statement.
“If enacted, these changes will impact businesses of all sizes, from companies investing in major projects to small and family-run businesses looking to grow, create jobs and support their local communities.”
The federal government defended criticism that the investigation was rushed because the hearings lasted only two days.
Labor has said it would want the changes to be passed by July 2, when parliament meets for the winter recess, but they are not guaranteed to pass.
While the coalition opposes the measures, the Greens have not yet indicated whether they will support the reforms through the Senate.
Bran Black, chief executive of the Business Council, said the reforms were rushed and would not raise living standards.
“The government has chosen policies that do not make the pie bigger,” he said.
“Good reform encourages investment and rewards risk-taking. These changes will move Australia in the opposite direction and make it harder to attract the capital needed to grow the economy.”
Property associations and economists will also be present ahead of Monday’s inquest.
The Property Council of Australia said the government had not yet proven that negative gearing changes would increase supply.
“At a time when governments should be focusing on improving productivity, reducing delivery costs and removing barriers to investment, the budget instead imposes new tax burdens on capital formation, enterprise and targets,” the group said in its presentation.
The federal government says the measures will help an additional 75,000 Australians buy their first home over the next 10 years.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
