Albanese Expands CGT Threshold to A$10M for 2.7M Small Businesses

Australia has softened its capital gains tax reforms following backlash from business groups. Prime Minister Anthony Albanese announced that the turnover threshold for the 50% CGT discount will rise from A$2 million to A$10 million, bringing all 2.7 million active small businesses into scope along with carve-outs for start-ups and testamentary trusts. The 30% minimum tax on net capital gains remains scheduled for July 2027, but the concessions are expected to cost A$475 million while the broader package still raises A$8.1 billion. The changes aim to ease concerns over entrepreneurship and small-cap sentiment ahead of Senate votes.