Prime Minister Anthony Albanese has left the door open to further tweaks to the tax policies central to last week’s budget, as he and his Treasurer continue to struggle to sell their plan to a sceptical public. Source: The West Australian.
Mr Albanese conceded new tax arrangements for trusts will take longer to bed down than capital gains discounts as he and Treasurer Jim Chalmers again had their sales roadshow bogged down by questions over the budget’s broader impacts.
Several Labor sources questioned why ministers had chosen options that were so complex they were still struggling to explain the policy a week on, rather than limiting capital gains changes to housing only.
It appears start-ups will have their concerns about tax levels addressed, but this won’t be certain for another fortnight.
Mr Albanese and Dr Chalmers are facing backlash on two fronts, in addition to the political attack from the Opposition.
A meme campaign by small business owners and start-ups raises concerns about the capital gains tax changes, which would levy a minimum 30 per cent tax, and up to 47 per cent, on the “real gains” if their company succeeded and was eventually sold.
Separately, there is push back about a plan to impose a minimum 30 per cent tax on discretionary trusts, including those used by about 350,000 of the nation’s 2.6 million small businesses.
Mr Albanese revealed while in Perth yesterday that the legislation to revert the capital gains tax discount from a blanket 50 per cent to inflation would be put to Parliament in a fortnight.
But the changes to taxation of trusts, which have attracted strong criticism over recent days, “will take longer to develop” and will be legislated later this year.
Deputy Liberal leader Jane Hume said small businesses were “seeing their very structures under threat” and being told to simply change them wasn’t good enough.
Dr Chalmers said that “the Budget was about housing” and making it easier for more people to buy their own home.
But asked when, if that was the case, the CGT changes weren’t limited to property investments, instead of hitting businesses and shares, he said the government didn’t want to create new “distortions” in the tax system.
FULL STORY
Anthony Albanese leaves door open to more tax changes as he struggles to explain complex policies to public (By Katina Curtis, The West Australian)
