Australia’s four peak business groups, representing millions of workers and businesses, have jointly called on Parliament to reject proposed CGT changes.
Four of Australia’s most influential business organisations have taken the rare step of issuing a joint statement opposing proposed capital gains tax reforms, calling on Parliament to reject legislation they say was rushed through without adequate scrutiny or economic impact analysis.
The statement, issued jointly by the Australian Chamber of Commerce and Industry, the Australian Industry Group, the Business Council of Australia, and the Council of Small Business Organisations Australia, represents a unified position across businesses of all sizes, from sole traders and family enterprises to major corporates employing thousands of Australians.
A united front
The four organisations rarely speak with one voice. That they have done so here signals the depth of concern across the business community about both the substance of the proposed changes and the process behind them.
Their position is direct: the legislation should not proceed, and Parliament should reject it.
The groups argue that at a time of growing global competition, Australia cannot afford policies that make it a less attractive destination for investment. The joint statement puts it plainly, saying Australia should instead be competing to attract the capital its projects and businesses need to grow the economy and fund the services Australians rely on.
What’s actually at stake
The proposed CGT changes are part of the broader 2026/27 Federal Budget reforms, which also include changes to negative gearing, discretionary trust taxation, and fringe benefits tax.
According to the peak bodies, the impact will be felt across the full spectrum of Australian business. Companies investing in major projects face a less competitive tax environment. Small and family-run businesses seeking to grow, create jobs, or support their communities face new constraints on how investment returns are taxed.
For SME owners in particular, CGT settings matter at every stage of the business lifecycle, from buying an asset to selling a business. Changes to the discount rate and investment rules affect not just returns but decisions about whether to invest in the first place.
The rush is the problem
Perhaps the sharpest criticism in the joint statement is not about the policy itself but about the process.
With the changes not set to come into effect until 1 July 2027, the peak bodies argue there is no justification for the speed at which the legislation is moving. They say the pace raises serious questions about whether any genuine economic impact analysis has actually been conducted.
The statement also raises a pointed concern about consistency. All four organisations participated in the Government’s Economic Reform Roundtable last year, engaging in good faith to examine broad reform aimed at lifting productivity and competitiveness. They argue the approach taken in this legislation is fundamentally inconsistent with that process and its stated objectives.
What business wants instead
The four groups are not arguing against tax reform. They are arguing for tax reform done properly.
Their position is that changes of this significance should be approached holistically, considering how personal tax, company tax, consumption tax, and state taxes interact as part of a long-term plan. Piecemeal changes, they warn, carry real risk of unintended consequences across the broader economy.
The right tax settings, they argue, encourage investment and innovation, drive productivity, and deliver higher living standards for current and future generations. All four organisations say they remain ready to work with the Government toward that outcome, but not under the current timeline or process.
For small business owners watching these debates unfold, the message from the peak bodies is clear: these changes matter, the scrutiny matters, and the next few months in Parliament matter too.
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