Australia Consults Start-Ups on 50% Capital Gains Tax Break Overhaul
Updated
Updated · Bloomberg · May 24
Australia Consults Start-Ups on 50% Capital Gains Tax Break Overhaul
5 articles · Updated · Bloomberg · May 24
Andrew Charlton said the government is consulting small businesses, especially start-ups, after backlash to budget plans to tighten capital gains tax breaks.
The proposal would replace the current 50% capital gains tax discount with inflation indexation and impose a 30% minimum tax rate on net capital gains.
Charlton said the model could disadvantage start-ups with very low capital bases because they have little inflation uplift to offset gains.
The consultations signal the center-left government is testing whether to adjust a budget measure that would affect gains on property, shares and businesses.
Will Australia's tax 'fix' accidentally crush its booming start-up and tech sectors?
Do new capital gains tax reforms genuinely promote fairness or primarily benefit the wealthiest investors?