Australian Government to Introduce Capital Gains Tax Bill Thursday

The federal government will introduce a tax bill to the House of Representatives on Thursday that combines capital gains tax changes, negative gearing restrictions, a $250 tax offset for workers, and a $1,000 standard tax deduction. Prime Minister Anthony Albanese said the bill is expected to reach the Senate later in June. Labor will depend on the Greens to secure passage.

Albanese announced on Monday that the government will consult small business groups on a position paper for a second tranche of legislation addressing CGT carve-outs. Senior Labor figures have indicated any exemptions are expected to remain limited to the tech startup sector.

Business groups have called for broader changes. Australian Chamber of Commerce and Industry chief executive Andrew McKellar said carve-outs would be inadequate and urged a pause in the legislation. "We are concerned carve-outs here and there would be wholly inadequate," he said.

" Business Council of Australia chief executive Bran Black said the proposed changes would make an already uncompetitive tax system less competitive and welcomed a parliamentary inquiry.

The bundling of measures creates a political choice for the Coalition, which has opposed tax increases but planned to support the $250 offset. Opposition Leader Angus Taylor said the government does not understand the pressures on small business owners. Greens leader Larissa Waters said the party will review the bill before deciding on support or referral to an inquiry.