Australian Government Faces Pushback on Capital Gains Tax Changes

Collapse all posts

off

Sort

Sort posts

New: Filters

Choose what information you see below by using filters

Filter Posts

All

13

Key Events

6

Albanese says US 'very keen' on getting ISIS-linked people out of camps

J

By Joshua Boscaini

A further six ISIS-linked Australian women, their children and grandchildren are likely to leave a camp in north-east Syria within days.

Earlier this month, four women and nine children left Al Roj bound for the Syrian capital boarded flights flights to Sydney and Melbourne.

Asked about the departures, Prime Minister Anthony Albanese says the US State Department has been "very keen" on people leaving the camp.

"We are not providing any assistance," Albanese says.

"If there have been any breaches of Australian law, they will face the full force of the law, which is what happened to, people when they arrived back, just a couple of weeks ago," he says.

Albanese says 'campaigns' against budget changes 'distort' what's being offered

J

By Joshua Boscaini

Prime Minister Anthony Albanese has dropped into ABC Perth where he's continuing his efforts to sell last week's federal budget.

This morning, 40 start-up business owners released an open letter, criticising the government's changes to the capital gains tax as an "aspiration ambush".

The prime minister says the "campaigns" that have been run against the changes to taxes in the budget "aren't based upon facts of what is actually occurring".

The capital gains tax discount will be replaced with an inflation-adjusted discount, and real gains will be taxed at a minimum of 30 per cent from July 2027.

"That's only realised when a business is sold, when an asset is realised, it's not an ongoing annual year thing or anything else. And most small businesses pay little or no capital gains tax when they sell," Albanese says.

"There are campaigns being run from the right-wing parties and their allies to distort some of what's being offered. We'll talk that through, and that's why we are taking every opportunity to explain what the changes are," Albanese says.

Government sticks to budget changes, despite pushback

E

By Evelyn Manfield

The federal government is standing firm on its planned changes to the capital gains tax discount, despite pushback from some business owners and investors.

You might've seen Labor is facing criticism for scrapping the current 50 per cent capital gains discount for gains made on not just property, but other assets too. The budget also included changes to the way discretionary trusts will be taxed.

In response, some business owners have posted AI-generated memes online depicting Prime Minister Anthony Albanese as their business's new co-owner.

Despite the heat, Finance Minister Katy Gallagher told the ABC's 7.30 last night the government's not planning to budge.

"The decisions we've made are outlined in the budget, and we would be proceeding with those with legislation in the next several sitting weeks," she said.

Gallagher also sought to counter the "misinformation" about the impact on small businesses, insisting that "in relation to some of the concerns that have been raised, particularly in relation to trusts and how they are managed," 90 per cent of small businesses would not be affected.

"The existing generous arrangements around capital gains tax for most small businesses, again, won't be affected," she said.

More ISIS-linked women and children set to return to Australia

J

By Joshua Boscaini

Six Australian women, along with their children and grandchildren, look likely to leave a squalid camp for the families of former Islamic State fighters in north-eastern Syria within days.

The exact timing of their departure is not yet set, with wrangling underway between Kurdish and Syrian officials over the logistics of their travel, including the journey from the Al Roj camp to Damascus, over 10 hours drive away, and their onward flights to Australia.

Camp administrators have denied knowledge of any plans to the ABC, but word has spread from other camp staff and officials within the Syrian government that movement is imminent.

Read the full story from Middle East correspondent Matthew Doran and Cherine Yazbeck in the link below.

Spender says she 'probably' underestimated concerns from startup sector on CGT changes

J

By Joshua Boscaini

Independent MP Allegra Spender says she "probably" underestimated the concerns about how capital gains tax (CGT) changes would affect the startup sector.

The Wentworth MP released a white paper which favoured lowering the CGT discount to 30 per cent.

Speaking to ABC Radio National Breakfast, Spender says she thinks a reduction in the CGT discount to 40 per cent would be more reasonable.

"I think that the Henry Review recommended a 40 per cent … discount on CGT," Spender says.

"I think, in retrospect, looking at my own proposal, I think that's a more reasonable level, and so that's personally where I think that would be a reasonable level at the CGT," she says.

The Independent says she would like the government to return increased taxes to Australians through lower marginal tax rates.

"You need to give all of that back as lower marginal tax rates because that's actually going to really help young people. So that's what I'm working through at the moment," she says.

Ruston won't say if shadow cabinet was consulted on Coalition migration policy

J

By Joshua Boscaini

Shadow Health Minister Anne Ruston hasn't said whether she was notified about the Coalition's migration policy ahead of Angus Taylor's budget-in-reply speech last Thursday.

The opposition leader unveiled plans to block non-citizens from accessing 17 government welfare payments, including the NDIS and paid parental leave. Taylor also committed to tying the net overseas migration number to housing construction.

This morning, the opposition leader told Channel Nine the policy went through the proper party process and that he discussed the matter with "senior colleagues".

Asked if the shadow cabinet had been consulted on the migration policy, Ruston says she wouldn't "ever" comment on what does or doesn't go to the shadow cabinet.

"I was obviously well aware of everything, I'm in leadership and I'm well aware of many things that occur and certainly I support the leader's budget-in-reply speech," Ruston told ABC Radio National Breakfast.

But pressed on whether she was aware of the policy to cut future permanent residents' welfare payments prior to Taylor's speech, Ruston says she won't comment on what was discussed.

"There was nothing out of the ordinary about the way the policies and the positions that were put forward on Thursday night in the budget-in-reply speech; they were done in the same way they have always been done," she says.

Aged care price cap delay result of poor policy implementation, Anne Ruston says

J

By Joshua Boscaini

Shadow Health Minister Anne Ruston says the government's decision to push back the introduction of price caps on aged care services is the result of poor policy implementation.

The government will again delay the implementation of formal price caps for support for home aged care services, citing "price inflation" amid the Middle East war.

But Health Minister Mark Butler hasn't set a date as to when the government expects to bring the policy online.

Speaking to ABC Radio National Breakfast, Ruston says the decision came at the last minute.

"The government has known for a long time the concerns around the lack of information that the sector has been saying is causing them problems because all of the red tape that has been piled onto them," Ruston says.

"And then to come out yesterday at the last minute, giving the sector no certainty at all for the last 12 months and five minutes to midnight, he actually backflips," she says.

Transport minister says 'misinformation' circulating online about CGT changes

J

By Joshua Boscaini

Transport Minister Catherine King says she thinks there has been "misinformation" circulating online about the government's changes to capital gains tax.

In summary, the capital gains tax discount will be replaced with an inflation adjusted discount, and real gains will be taxed at a minimum of 30 per cent from July 2027.

The changes will be applied to all assets except new buildings, including existing property and shares.

Speaking to ABC Radio National Breakfast, King says there is "not a lot of fact" in memes claiming the government will become a 47 per cent partner in businesses.

"They have got it wrong. I think there have been a number of other people, including ourselves, but economists, coming out and saying that there's not — including the person who created the meme in the first place — that there's not a lot of fact in there," King says.

And as other government ministers have mentioned over the past week, King says the government is consulting with the start-up sector.

"The treasurer has been very, very clear all the way along that we are aware of the issue. We don't want to disincentivise startups, particularly in the tech industry that's got such great potential here in Australia," she says.

Angus Taylor denies he didn't consult colleagues on Coalition's migration policy

J

By Joshua Boscaini

Opposition Leader Angus Taylor has denied that he single-handedly decided the Coalition's migration policy, as outlined in the opposition's budget reply speech.

Last Thursday, the Coalition unveiled plans to limit Australia's net migration intake to one person per new home built, but didn't say which visa classes it would cut.

He also unveiled plans to block non-citizens from accessing 17 government welfare payments, including the NDIS and paid parental leave.

Liberal senator Andrew McLachlan told ABC Radio National Breakfast yesterday that the housing debate should descend into a discussion about migration.

Speaking to Channel Nine, Taylor says the policy went through the proper party room processes.

"Migration numbers need to be capped to be absorbed in the country; it's got to be below the housing we have. I mean, you cannot allow more people into the country than we have houses," Taylor says.

"I discussed it with senior colleagues, and we went through the normal processes. There were no captain's calls," he says.

Assistant minister pushes back against online claims about CGT changes

J

By Joshua Boscaini

Assistant Minister for Science Andrew Charlton says claims circulating on social media about the government's changes to capital gains tax are "factually incorrect".

The federal government will replace the 50 per cent capital gains tax discount with a discount based on inflation, and all real gains will incur a 30 per cent minimum tax from July 2027.

Viral AI-generated memes taking aim at the government's changes to capital gains tax have flooded social media feeds, welcoming Anthony Albanese as a "47 per cent silent partner" to their businesses.

Speaking to ABC Radio National Breakfast, Charlton says the government is moving to tax real gains instead of nominal gains.

He says the real gains will always be "substantially smaller" than the nominal gains.

"Unlike what those claims and memes suggest, nobody is paying their full marginal tax rate on a nominal gain, we're shifting it to a real gain," Charlton says.

"What that means in practice is that in some cases, on some asset classes, people will actually be better off under the new regime and be paying less tax," he says.

Forty business owners release open letter critical of capital gains tax changes

J

By Joshua Boscaini

A group of 40 business owners have written an open letter to the prime minister, criticising the government's changes to capital gains tax (CGT).

The federal government will replace the 50 per cent capital gains tax discount with an inflation-based discount, and all real gains will incur a 30 per cent minimum tax from July 2027.

The business owners have labelled the budget measures as an "aspiration ambush" that will not just impact startups, but growing businesses.

"Rather than back us, you have ambushed us with a massive tax increase, a tax that will hit us, the Australians we hire, and the investors who believe in us, the hardest," the letter reads.

"The consequence isn't a budget that helps young people get ahead; it's a budget that will ensure that young business builders, people like us, are much more likely to get left behind," it says.

Shadow treasurer to unveil new campaign to 'back' small business

L

By Lexie Jeuniewic

Shadow Treasurer Tim Wilson will today formally unveil a new opposition campaign he says will "back" the small businesses of Australia.

In an upcoming speech to the National Press Club, Wilson will announce the opposition's "Stand with Small" campaign, which he says will get input from Australia's self-starters about how the economy can be re-structured to empower the sector.

The Goldstein MP will say a "future Coalition government" will consult on a "Small Business Act", which would include ensuring faster payments from government and big businesses, and a uniform definition of a small business.

"Where the Albanese government has declared war on the self-starters and small businesses of this nation, we are going to fight for them," Wilson will say.

The opposition's latest pitch to small businesses follows backlash from some within sector over the government's decision in the budget to change the capital gains tax discount.

The capital gains tax discount will be replaced with a discount based on inflation and investors will pay a minimum 30 per cent tax on gains.