Australia: Labor walks tightrope as tax overhaul alarms start-ups and investors
Australia's Labor government is preparing to defend its tax overhaul against start-ups and investors worried about the impact on small businesses, trusts and share-based holdings, the ABC reports. Ministers say feedback on housing reforms has been positive but acknowledge the tax debate is far more contentious. The package has moved to the centre of Australia's political agenda.
ABC News reports that Prime Minister Anthony Albanese's Labor government is bracing for an intense lobbying campaign against its new tax package, which industry groups warn could weigh on small businesses, family trusts and share-based savings. The government argues the package improves the fairness of the income system and will not undermine the long-term investment climate.
Labor MPs say recent constituency feedback on housing reforms has been positive but acknowledge much greater unease around tax. Venture capital firms and start-up groups in particular warn that new definitions for the taxation of share options could prompt a brain drain in the technology sector.
The opposition Coalition is preparing to brand the package a 'hidden tax rise' and force a sharp parliamentary debate. Treasury has signalled it may adjust small-business thresholds and outline a transition for the taxation of trusts. The revisions expected from Treasury in the coming weeks will define the final shape of the package, with parliamentary debate set to intensify into Australia's late autumn.
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