Former prime minister and treasurer Paul Keating has come to the defence of tax changes in the federal budget, as a Labor premier says workers are still paying too much.
Mr Keating said capital gains tax changes in the budget were "structurally sound", despite concerns from business owners it could stifle investment.
The Albanese government's fifth budget replaces the 50 per cent discount on capital gains held for more than a year with a rate based on inflation.
Real gains would be taxed at a 30 minimum rate, prompting concerns from businesses and start-ups.
Mr Keating said the changes were necessary in order to make housing more affordable, dismissing concerns it would hamper businesses in the process.
"Punters with a big idea won't be put off by some marginal change to the tax rate. The rush of entrepreneurial blood to the brain always dominates," he said in a statement.
