Treasurer Jim Chalmers: Government lost 'political paint' on budget changes but it was worth it

Treasurer Jim Chalmers says he thinks the government has lost some support following May's federal budget but doesn't regret pressing ahead with the changes.

Labor backed down on some key measures in the budget and announced carve-outs for small businesses from capital gains tax changes.

The federal government is increasing the small business turnover threshold for capital gains tax concessions from $2 million to $10 million.

And income from all types of testamentary trusts will be exempt from the minimum tax, including future discretionary testamentary trusts.

Speaking to ABC Radio National Breakfast, Chalmers says the government thinks it has made the right decision in the interests of young people.

" I think we have lost some political paint, but it's worth it because we're doing the right thing here and if we're given the choice between taking the easier path politically or doing the more difficult thing, but the right thing in the interests of particularly first home buyers, young people, workers in the tax system, then it will be worth it," Chalmers says.

Labor needs the support of the Greens to pass it's budget measures through the Senate, but Chalmers hasn't whether he's inching closer to a deal with the minor party.

"We'll continue to discuss with the crossbench in the Senate the best way to pass this legislation. Obviously, there have been some discussions, those discussions aren't concluded yet."