Businesses still in dark on tax carve outs from budget
Startups and small businesses will have to wait longer to find out whether they will receive special treatment due to the upcoming tax changes, as the government plans to introduce the measures within a few weeks.
Measures in the federal budget that limit negative practices for new properties from July 2027 and envisage changing the 50 percent reduction in capital gains tax according to the inflation rate will be discussed in the late night sessions of parliament.
Labor has signaled it will try to pass the legislation in the House of Representatives on Thursday before it passes the Senate.
However, the future of the legislation is still in doubt as the Greens have not confirmed whether they will support the measures after the coalition refused to back the tax change.
Despite the timeline, Finance Minister Jim Chalmers did not say when exemptions to the measures would be completed.
“It is not uncommon for legislative instruments to be used to finalize such definitions or such implementing regulations,” he told reporters in Canberra on Tuesday.
“The timing of the key elements will be in the House this week and in the Senate as soon as possible.”
Small businesses and start-ups are calling for changes to the industry in response to capital gains tax changes.
Prime Minister Anthony Albanese told his Labor colleagues at the party meeting that the measures would help make the housing market fairer for young people.
“We’re trying to change the system to give people a better chance at a time when a lot of people feel like the system isn’t working for them,” he said.
“We want young Australians to have the chance to own their own home. It’s a professional aspiration and a professional supply.”
Opposition Leader Angus Taylor echoed National Party leader Matt Canavan’s call for the government to call an early election to gain authority for tax changes.
Mr Albanese said during the 2025 election campaign that the government had no plans to introduce negative gearing or changes to capital gains taxes.
“If you don’t have the courage to call an election now, we will make the next election a referendum on these tax increases,” he told the parliament.
“This is a prime minister who has no respect for the truth, no respect for the truth and certainly no respect for hard-working Australians.”
Mr Taylor said the coalition would still vote against the measures, even though the tax changes were tied to a $250 annual tax offset for workers.
“Introducing this law into parliament without sufficient scrutiny is an act of political bastardy and expediency,” he said.
“What Australians see is a malevolent government, a malevolent government playing a cynical political game.”
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.
