SYDNEY, June 18 (Reuters) – The Australian government, in a major turnaround, announced on Thursday changes to its capital gains tax overhaul after critics warned the planned reforms would stifle small businesses.
• Under reforms unveiled in last month’s budget, a 30% minimum tax on net capital gains (CGT) will be introduced from July 2027, but industry groups had argued the change would reduce incentives to invest in and grow businesses.
• Some exemptions exist, allowing businesses to access a 50% discount on the CGT on assets held for more than 12 months.
• The government is now raising the turnover threshold for small businesses to be eligible for the discount to A$10 million ($7 million) from A$2 million.
• “We back Australian small businesses and the important role that they play in Australia,” Prime Minister Anthony Albanese said.
• Albanese said 2.7 million active small businesses in the country would be eligible for the discount.
• The government would also introduce a new “innovative business tax concession” for start-ups, he said.
($1 = 1.4239 Australian dollars)
(Reporting by Christine Chen and Alasdair Pal in Sydney; Editing by Edwina Gibbs)
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