Business Council Warns Labor to Cut Spending Before Implementing New Tax Scheme

Australia’s Prime Minister Anthony Albanese holds a press conference with New Zealand’s Prime Minister Christopher Luxon following the annual AustraliaNew Zealand Leaders’ Meeting in Noosa in Queensland, Australia on June 6, 2026. Patrick Hamilton/AFP via Getty ImagesThe government should look to its spending before increasing taxes, business groups have told the Senate Economic Committee, which is scrutinising Labor’s overhaul of wealth creation vehicles.The Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026 alters the capital gains tax (CGT) regime, which applies to the profit of an asset sale. Previously a 50 percent discount was available, meaning an investor was liable for a tax on the remaining half of the profit.