Indi Independent federal MP Helen Haines has welcomed the federal government's decision to expand capital gains tax (CGT) concessions for small businesses, saying the changes respond to concerns raised by regional businesses, farmers and family enterprises in her electorate. The government announced on Thursday it will raise the turnover threshold for the small business active asset reduction from $2 million to $10 million, extending access to around 98 per cent of Australian businesses. In speaking on tax reform legislation in the Parliament at the start of June, Dr Haines encouraged the government to update the threshold for all four small business CGT concessions, backing calls from COSBOA and the National Farmers’ Federation after meeting with them about the reforms. Dr Haines acknowledged the increase was a welcome improvement to the government’s tax package, which she supported in the lower house. "Australians expect a tax system that is fair, sustainable and fit for the future...they also expect governments to listen when legitimate concerns are raised," she said. "I have consistently supported reform that improves housing affordability and reduces unfair tax distortions, while ensuring regional small businesses, farmers and family enterprises are not caught by unintended consequences. "This announcement is a positive step. "I’m pleased the government has acted on calls from COSBOA, the NFF and members of the crossbench. "It provides greater certainty for small business owners who have worked hard to build and grow enterprises that support local jobs and regional economies." Dr Haines said the broader objective of tax reform remains important, as do the details. The government has flagged additional carve-outs for start-ups as well as changes to the legislation dealing with trust income, which is yet to be introduced. "The challenge for Parliament is to get the balance right - delivering meaningful reform while protecting the small businesses and family enterprises that are the vital for the prosperity of regional Australia," she said. "Good tax reform should be evidence-based, transparent and fair. "I welcome the government's willingness to make changes and I look forward to seeing the detail of these and other measures."
