Albanese announces ‘generous’ capital gains tax exemptions for small businesses after budget backlash

Startups and testamentary trusts to receive carve outs after criticism of Labor’s CGT changesFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastAll of Australia’s 2.7m small businesses will receive “generous” exemptions from capital gains tax, as Anthony Albanese flagged startups and testamentary trusts would be carved out of the government’s contentious tax reforms.The concessions failed to appease business groups and the opposition, who demanded that Labor scrap the reforms altogether, while the Greens warned there was “still a way to go” before they agreed to back the legislation, which is before the Senate.Small businesses with annual turnover of up to $10m will be eligible for existing CGT exemptions – which include an extra 50% discount – up from the current threshold of $2m.The founders of “genuinely innovative” startups with very low or zero cost bases, alongside their early investors and employees paid with shares in the business, will be able to stick with the existing 50% flat CGT discount.Testamentary trusts used to manage the income paid to beneficiaries from a deceased estate will be exempted from the proposed 30% minimum tax rate on discretionary trusts. Continue reading...