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Businesses unite to fight capital gains tax changes

Jun 15, 2026

Housing market graphic — Business groups warn planned tax changes are being rushed through and will discourage investment. -AAP Image

Changes to the capital gains tax will lower productivity and make Australia less competitive, business groups argue, as the contentious budget measures go under the microscope.

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A Senate inquiry into the tax changes will hold its first day of hearings on Monday.

Under the changes, the 50 per cent discount for capital gains tax will be replaced with a rate tied to inflation and a 30 per cent minimum, while negative gearing will be limited to new houses only from July 2027.

In a joint statement issued ahead of the inquiry, business groups warned the changes were being rushed through and would discourage investment.

The statement from the Australian Chamber of Commerce and Industry, AI Group, the Business Council of Australia and the Council of Small Business Organisations Australia said the changes must be rejected.

"At a time of growing global competition, Australia cannot afford policies that make us a less attractive investment destination," the statement said.

"If passed, these changes will affect businesses of every size, from companies investing in major projects to small and family-run businesses seeking to grow, create jobs and support their local communities."

The federal government has defended criticism the inquiry is being rushed, with just two days of hearings taking place.

Labor said it would want the changes to pass by July 2, when parliament rises for the winter break, but their passage is not guaranteed.

The coalition has come out against the measures, while the Greens are yet to indicate whether they will back the reforms through the Senate.

The reforms were rushed and would not lift living standards, Business Council chief executive Bran Black said.

"The government has chosen policies that simply do not grow the pie," he said.

"Good reform encourages investment and rewards risk-taking. These changes move Australia in the opposite direction and will make it harder to attract the capital needed to grow the economy."

Property organisations and economists will also appear before the inquiry on Monday.

The Property Council of Australia said the government was yet to make the case the negative gearing changes would boost supply.

"At a time when governments should be focused on improving productivity, lowering delivery costs and removing barriers to investment, the budget instead places new tax burdens on capital formation, enterprise and aspiration," the group said in its submission.

The federal government says the measures will help an additional 75,000 Australians buy their first home in the next 10 years.