The government has announced changes to its capital gains tax reforms announced in last month's budget, with more small businesses eligible for a discount — effectively offering a better tax rate following pushback.
Prime Minister Anthony Albanese said the 50 per cent active asset discount, which currently applies to small businesses with an annual turnover of up to $2 million, would be expanded to cover businesses with a turnover of up to $10 million.
In its May budget, the government announced capital gains tax rules would change from 1 July, with the 50 per cent discount for individuals, trusts, and partnerships to be replaced with cost base indexation and a 30 per cent minimum tax rate.
"We back Australian small businesses and the important role that they play in Australia. They're the blood running through the veins of our local communities and they're vital for our economy," Albanese told reporters in Sydney.
He also said the government will introduce new tax concessions for start-ups, following concerns that measures rolled out in the budget would harm entrepreneurship.
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Around 2.7 million small businesses will have access to tax concessions, Treasurer Jim Chalmers said.
Also part of the announcement was confirmation the government will exempt income from all types of discretionary trusts from the minimum tax, provided they are established for genuine testamentary purposes.
This is a developing story and this article will be updated.
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