What are the proposed changes to Australia's Capital Gains Tax (CGT) regime?

The Federal Government plans to replace the existing 50 per cent CGT discount for assets held longer than 12 months with a system based on Consumer Price Index (CPI) indexation alongside a 30% tax floor.

How will the proposed CGT changes affect Australian small business exits?

For certain small business owners looking to sell, the restructuring will effectively double the exit tax rate from 23.5% to 47%.

Why are critics calling the new Australian budget policy an "ambition tax"?

Opponents, including small business owners and fund managers, have labeled the policy an "ambition tax" because they believe it penalises risk-taking, wealth creation, and long-term investment.

What is the timeline for the Australian Government to pass the CGT legislation?

The Federal Government is scheduled to table the core elements of the CGT legislation on Thursday, 28 May 2026. Specific exemptions, carve-outs, and implementation details have been pushed into a second bill, which will undergo further Treasury consultation before being finalised.

Why did Prime Minister Anthony Albanese avoid consulting business groups before Budget night?

Prime Minister Anthony Albanese defended the lack of early consultation by stating that detailed pre-Budget discussions regarding tax changes could create unfair market advantages or "insider knowledge".

Image for illustrative purposes only. Not a real photo.

Business owners fight back against 'ambition tax'

Written by Isaac FrancisPublished May. 25 2026Last Updated May. 25 2026

Small business owners and investment chiefs have vowed to escalate their campaign against the Federal Government’s budget tax overhaul, deriding the proposed capital gains tax changes as a damaging “ambition tax”.

Prime Minister Anthony Albanese confirmed the core elements of the legislation will be tabled on May 28, with specific exemptions delayed until a second tranche following Treasury consultation.

Albanese defended the lack of pre-budget discussions, arguing that detailed prior disclosure would create unfair "insider knowledge".

However, critics warn that post-budget consultation cannot happen behind closed doors.

Under the plan, replacing the 50% CGT discount with CPI indexation and a 30% floor would effectively double the exit tax rate for some business sales from 23.5% to 47%.

While Treasury plans to consult peak industry bodies before finalising the second bill, the Australian Shareholders Association warned that everyday investors must also have a seat at the table to prevent widespread market confusion.