An existing capital gains tax concession for small businesses will be expanded and an innovative business discount 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 for small businesses and 2.7 million existing small businesses will be eligible as a result of the change, Prime Minister Anthony Albanese said on Thursday.
"We back Australian small businesses and the important role that they play in Australia," he told reporters in Sydney.
