Criticism of budget dismissed as “barely coherent noise”

In the weeks since the Albanese government’s latest federal budget was unveiled, there has been a growing chorus of criticism over the government’s changes to the tax system.

While some economists and commentators have welcomed the changes to the tax system as they relate to investment in existing property, as Leith covered here at Macrobusiness back in May, the minimum 30% capital gains tax rate and imposing the changed regime on investors in other assets has received an entirely different reception.

Small business owners have expressed their concerns that they could be forced to pay high levels of capital gains tax if they sell their businesses, since the actual initial cost base for many businesses is quite low and therefore enjoys a minimal benefit from indexation reducing the taxable capital gain.