Paul Keating urges Labor to stick with capital gains tax overhaul and avoid exemptions that would hurt economy

Former PM Paul Keating urged the Albanese government to press ahead with its federal budget capital gains tax (CGT) overhaul, arguing exemptions for commercial assets would further distort investment away from productive sectors and into housing. The reforms replace the 50% CGT discount with cost‑base indexation (taxing gains after inflation) and introduce a minimum 30% tax rate, while also including changes to negative gearing, a $1,000 standard deduction and a $250/year worker tax offset. Small businesses with revenue under $2m are to be exempted and further carve‑outs remain possible. The government seeks to pass the legislation before the parliamentary winter break in July, though the Coalition wants implementation delayed until July 2027 and is pushing for Senate scrutiny. Markets and business groups warn the changes could deter investment and entrepreneurship, while proponents say the shift will correct long‑running distortions favoring established housing — a policy move with material implications for capital allocation and investor behavior in Australian equities and property markets.