Australian business says Labor's tax overhaul plan has gone too far

The chief executive of the Australian Chamber of Commerce and Industry (ACCI) criticised the federal Labor government's proposed tax overhaul with a sharp analogy. According to ACCI, the package simultaneously proposes changes across many items — capital gains, small-business tax pass-throughs and international residency rules — which makes investment planning harder.

Small and medium-sized businesses look especially anxious. According to ACCI's data, SMEs have postponed a significant share of investments planned for the past three months. Industry representatives say if the package passes, businesses will reassess their market structure. The Treasury says the package will be a net positive for the investment environment.

The search for a solution will continue in parliament. The government said it has scheduled technical-level talks with ACCI and industry representatives. The opposition says the package in its current form will hurt investment and jobs. According to ABC News Australia, the debate will remain at the centre of upcoming budget negotiations.