Australia Consulting With Start-Ups After Tax Reform Backlash

Australia’s center-left government is consulting with small businesses, particularly start-ups, over the implications of a planned clampdown on tax breaks unveiled in this month’s budget, Cabinet Secretary Andrew Charlton said.

Under the proposed changes, a current 50% capital gains tax discount will be replaced by an inflation-indexation model with a 30% minimum tax rate on net capital gains, covering everything from property to shares and businesses. Charlton on Sunday acknowledged the new system could be problematic for firms with a very low capital base — like start-ups — as they have little to inflate off.

“There are real concerns out ...