An existing capital gains tax concession for small businesses will be expanded and a new concession will be introduced as Labor tries to ease the blowback from its budget tax changes.
One of four existing small business capital gains concessions, the 50 per cent active asset reduction, will be extended to all businesses with a turnover up to $10 million per year.
The existing threshold was $2 million.
It is the most widely used of the four such concessions used by small businesses and will be eligible to 2.7 million existing small businesses as a result of the change, Prime Minister Anthony Albanese said on Thursday.
"We're also proposing to introduce a new innovative business tax concession for startups and will release the consultation paper on the startup sector later this morning," he told reporters in Sydney.
