Proposed changes to capital gains tax (CGT) are raising concerns about the impact on long-term investment and business growth, according to Cosboa.
As debate over tax reform continues, business owners say the proposals are creating uncertainty around investment and expansion plans.
Cosboa CEO Skye Cappuccio said the organisation is working with member associations and industry groups. The aim is to assess the impact of the proposed changes on small businesses across Australia. She said many business owners have spent years reinvesting profits in staff, equipment, and expansion rather than increasing their personal income.
“What we are hearing very clearly from small businesses is that this is not just a conversation about tax. It is about whether Australia still encourages people to back themselves and build something over the long term,” she said.
Cosboa said policy settings should continue to support entrepreneurship and long-term business investment.
Entourage Finance MD and MFAA member Damien Roylance said many business owners are questioning whether the risks and trade-offs involved in building a business in Australia remain worthwhile.
“Like many small business owners, I could have taken a bigger income personally, but instead, you back the business because you believe the long-term investment will eventually pay off,” Roylance said.
In the agriculture sector, Victorian grain and sheep farmer Ryan Milgate said proposed CGT changes are increasing uncertainty around intergenerational succession planning. Land values and farm operating scale have increased since the current thresholds were introduced, he said. Farm income also remains tied to weather conditions and commodity prices.
Milgate said the changes could force farming families to delay succession plans, increase borrowing or sell assets to manage tax obligations.
Cosboa said concerns raised by the MFAA and the National Farmers’ Federation reflect broader feedback from small business owners across Australia.
The organisation called on the government to update small business CGT concessions by increasing eligibility thresholds to annual turnover below $10 million and net capital assets below $12 million. It also proposed valuation arrangements from July 1 next year if new CGT measures proceed.
Cosboa said further consultation with the small business sector is needed before any tax changes proceed.
- Further reading: Cosboa sounds warning over unintended consequences of CGT changes.
