Labor Concedes Tax Overhaul Impacting Its Popularity

Treasurer Jim Chalmers said the reforms were worthwhile but admitted Labor had suffered from a ‘big partisan political campaign’ against them.

Australian Treasurer Jim Chalmers addresses the National Press Club in The Great Hall in Canberra, Australia on May 13, 2026. Hilary Wardhaugh/Getty Images

The treasurer has admitted that Labor has lost some “political paint” from its contentious overhaul of capital gains tax, as start-up founders are split over carve-outs from the changes.

“Innovative businesses” will continue being allowed to access the existing 50 percent capital gains tax discount, while eligibility for the existing 50 percent active asset reduction for small businesses will be expanded.