The Aussies set to be spared from Labor's sweeping capital gains tax overhaul: What you need to know

Published: 23:09, 15 June 2026 | Updated: 23:18, 15 June 2026 The Albanese government is set to unveil carve-outs to its divisive capital gains tax reforms, with start-ups and small businesses likely to be spared from some of the toughest changes. Under the reforms, the current 50 per cent capital gains tax discount would be scrapped and replaced with a system that adjusts gains for inflation and imposes a minimum tax rate of 30 per cent. From July 2027, Australians who sell assets such as shares, businesses or farmland would no longer automatically receive a 50 per cent tax discount on their profits. Treasurer Jim Chalmers is expected to release draft proposals for the carve-outs this week as the government races to pass the legislation through parliament before the end of the month, the AFR reports. The proposed exemptions are expected to focus on start-ups and biotech firms, whose owners argue they would be among the hardest hit by the changes because their businesses are often built with very little upfront investment. The carve-outs would allow eligible businesses to continue using the existing 50 per cent CGT discount. The government is also considering raising or indexing the $2 million turnover threshold that allows eligible small businesses to access CGT concessions. Business groups argue the cap, which has remained unchanged since 1997, should be increased to $6 million. Last week, Prime Minister Anthony Albanese refused to confirm whether additional carve-outs were being considered. Labor is preparing to soften its controversial capital gains tax overhaul, with start-ups, biotech firms and some small businesses expected to receive exemptions from the toughest changes  The CGT discount of 50 per cent will be replaced with an inflation-indexed calculation and a 30 per cent minimum rate 'All of the existing carve-outs and exemptions remain and there are four of those significant ones for small business,' he told the ABC. 'The taxation being based upon real gains is a sensible way forward. It's also a sensible thing to do to treat more equally income from work.' The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.