An Indigenous startup founder has warned that Labor's proposed capital gains tax (CGT) changes will restrict small business growth, despite the government considering raising eligibility thresholds. Lane Stockton, founder and CEO of Brisbane-based toilet paper manufacturer Yarn'n, said the reforms 'handcuff' his ability to expand and attract investment.
Yarn'n, which directs 50% of profits to educating Indigenous children, already exceeds the current small business turnover threshold of $2 million. Stockton, a 31-year-old Aboriginal man, said he has invested his own capital and forgone a salary to build the company. 'The reward has to be there for business owners to sacrifice themselves and their financial stakes,' he said.
The federal government is consulting on raising the turnover threshold for CGT concessions from $2 million to $10 million, which would make an estimated 200,000 extra businesses eligible. However, business groups argue broader reforms are needed. Australian Chamber of Commerce and Industry chair Andrew McKellar said expanding the definition is 'only part of the solution' and that existing concessions are 'too restrictive'.
Labor introduced legislation this week that includes replacing the 50% CGT discount with an inflation-linked deduction, along with negative gearing changes and tax offsets. Prime Minister Anthony Albanese said the government is 'engaging in good faith' in consultations but warned against expecting 'big changes' to the proposal. The opposition has called for a lengthy inquiry into the tax package.
