Australian business groups challenge proposed changes to capital gains tax
Australian business groups challenge proposed changes to capital gains tax
Updated at: June 15, 2026 at 09:15 AM
As of mid-June 2026, Australia’s business sector is pushing back against federal government proposals to overhaul Capital Gains Tax (CGT) and trust taxation.
The government intends to replace the existing 50% CGT discount with a system linked to inflation, alongside a 30% minimum tax rate and stricter rules on negative gearing.
Officials claim these changes are essential for enhancing housing affordability and fairness.
However, a major coalition of business groups, including the Australian Chamber of Commerce and Industry and COSBOA, argues that these reforms are "rushed" and lack sufficient consultation.
Critics contend that the changes will stifle long-term investment, hurt small business owners who rely on business sales for retirement, and complicate the tax landscape.
With the legislation currently under review by a Senate committee, the outcome remains uncertain.
The government insists on the necessity of these reforms for economic sustainability, but business groups remain firmly opposed, urging the Senate to demand substantial amendments before passing the bill.
