There is broad support in my electorate for tax changes to fix a broken housing market.  

People understand the old capital gains tax rules have priced out young people from their first home, and that needs to change.  

But many have also raised concerns about the Government’s planned reforms disincentivising investments in start-ups and small businesses.  

I surveyed constituents about this, and 3 in 4 respondents supported a CGT carve-out for founders, recognising that passive property gains and active business gains are different.  

But beyond the start-up and tech sector, I’ve also heard from small business owners who have put in years of hard work, often foregoing salaries and super, with the expectation that their business would support their retirement.  

These plans are now in doubt. 

While existing small business CGT concessions will remain, 175,000 small businesses won’t be eligible.  

These larger small businesses do a lot of heavy lifting on productivity and employment. 

Thankfully, there’s a simple tweak that would go a long way: lifting the eligibility threshold for the small business CGT concessions from $2 million in annual turnover to $10 million.  

That would cover all small businesses and align the concessions with the ATO’s definition of ‘small business’.  

The Government is undertaking consultation on this issue, and I welcome their willingness to engage.  

I urge them not to rush, but to ensure they get the design of these important reforms right.