Australia amends CGT reforms, adds small-business, startup

The Australian government has announced significant modifications to its proposed capital gains tax and trust reforms, introducing new exemptions and concessions valued at $475 million over four years. Prime Minister Anthony Albanese and Treasurer Jim Chalmers unveiled the changes in Sydney on Thursday, June 18, 2026, following sustained criticism from business groups and a parliamentary inquiry.

The revised plan expands an existing small business capital gains tax concession. The threshold for the 50 percent "active asset" reduction will be raised from businesses with a turnover of $2 million to those with a turnover of up to $10 million annually. Officials stated this change will make the concession available to approximately 2.7 million existing small businesses. The government also announced it will retain three other existing small business CGT concessions.

A new innovative business tax concession for startups and founders will be introduced, though the specific eligibility criteria remain under consultation. A discussion paper on the measure is expected to be released. Furthermore, the government has scrapped its proposal to impose a minimum 30 percent tax rate on...