Rushed patch-up job on CGT leaves serious problems for business

Media Release: 18 June 2026

Measures announced today to ameliorate the economic damage to the business community from the proposed CGT changes will fail to address the broader negative impact of the changes. 

The Australian Chamber of Commerce and Industry (ACCI) says eligible small businesses will welcome the exemption from the government’s tax grab, but it does not address the broader problems created by the flawed reform.

ACCI Chief Executive Officer Andrew McKellar said the proposed CGT changes will still impact on investment in business across the economy, not just small businesses.

“The federal government is trying to ameliorate the damage of these CGT changes, but that is all it does,” Mr McKellar said.

“The Bill still imposes a significant new tax burden, penalising investment in a wide range of businesses.

“This is really a rushed patch-up job trying to deal with the welter of criticisms since the Budget, so the government can rush the legislation through parliament with as little scrutiny as possible.

“The fact remains that Australia will have one of the highest CGT rates in the developed world. That will deter business investment and significantly slow productivity growth.”

Mr McKellar said increasing the turnover threshold will assist small businesses that would otherwise have been caught in the net, but the damage will remain for those outside the change.

He said the government should abandon its attempts to ram the CGT changes through Parliament and go back to the drawing board.

“The government must rethink its approach, which rests on the flawed premise that business investment should be taxed more heavily,” Mr McKellar said.

“Targeted concessions may provide some relief, but they do not fix the underlying problem.

“Businesses need a tax system that encourages investment across the entire economy, not one that penalises it.”

ACCI will examine the detail in the government’s consultation paper on concessions for the so-called ‘innovative businesses,’ but says this already poses significant questions.

“Again, the government appears to be trying to mitigate the damage in certain areas, but innovation is incredibly broad,” Mr McKellar said.

“Innovation exists across all sectors and all types of business. The government must recognise this.”