18/06/2026
The Government has released more details about its proposed tax reform package following extensive consultation after the Budget.
The goal is simple. Help Australians buy their first home. Reduce tax for workers. Create a fairer balance between income earned from work and income earned from assets.
The latest announcements provide greater certainty for investors. They also deliver additional support for small businesses and encourage innovation across Australia.
A major change is the increase in the turnover threshold for the existing 50% Capital Gains Tax (CGT) active asset concession. The threshold will rise from $2 million to $10 million. This means around 2.7 million small businesses, representing 98% of active businesses, can access the concession.
The Government is also seeking feedback on a new Innovative Business CGT Concession. This proposal would offer a 50% CGT discount to early-stage investors, founders, and employee shareholders in eligible start-ups.
In addition, all testamentary trust income will remain exempt from the minimum tax, including future discretionary testamentary trusts.
These reforms are expected to deliver more than $3.8 billion in tax relief and incentives for businesses and start-ups, alongside further tax cuts for workers and measures aimed at improving housing affordability for first-home buyers.