CGT concessions too narrow: ACCI submission

11 July 2026

The federal government’s proposed capital gains tax (CGT) concessions for “innovative businesses” are too narrow and risk leaving many businesses in the lurch, the Australian Chamber of Commerce and Industry (ACCI) says.

In its submission on the government’s Innovative Business CGT Concession consultation paper, ACCI argues the proposal overlooks the vast majority of innovation taking place across the economy every day.

ACCI Chief Executive Officer Andrew McKellar said businesses in sectors including mining and exploration, food services, advanced manufacturing, agribusiness and health services would miss out, with concessions largely confined to a narrow cohort of technology start-ups.

“Innovation happens across the economy, not just in Silicon Valley-style tech companies,” Mr McKellar said.

“Businesses in all sectors develop and adopt innovation at all stages of their business cycle, it’s not just limited to a narrow set of early- stage tech start-ups.

“Businesses invest every day in new technologies, products, research and development, and better ways of operating to lift productivity, but very few businesses would be able to meet the highly prescriptive innovation test being proposed.

“Many forms of commercially significant innovation offering considerable productivity and economic growth would be excluded from the narrow CGT concessions, and therefore taxed more heavily.”

A key sector excluded from the innovative businesses CGT concessions, despite being a major economic driver, is junior minerals explorers. This is a capital intensive and high-risk sector, as the prospects of a return depend on making a lucrative discovery, which may take years.

“This is one of the very sectors where businesses making high risk investments should be rewarded with the opportunity for higher returns, given the difficulty in attracting capital from more conventional lenders such as banks and finance companies,” Mr McKellar said.

“At a time when the government is focused on opportunities in critical minerals, it is withdrawing one of the main incentives for exploration and new discoveries.

“Shutting these companies out of the CGT carve outs risks a loss in exports, less jobs in regional areas and further strangling of productivity.”

Mr McKellar also highlighted the complexities of the carve outs.

“ACCI is concerned that the proposed framework is too complex and will be another factor deterring investment when businesses need clarity and certainty,” he said.

To read the submission, click here.