Long-promised capital gains carve-outs for startups have been revealed and tax changes rolled back for some trusts as Labor tries to ease the blowback from its contentious budget.
The concessions, unveiled on Thursday, will keep the existing 50 per cent capital gains tax discount for "innovative businesses" following a fiery campaign by startups and entrepreneurs that has taken the shine off Treasurer Jim Chalmers's reforms.
On top of the carve-out, one of four existing small business capital gains concessions - the 50 per cent active asset reduction - will be extended to businesses with a turnover up to $10 million a year from the existing threshold of $2 million.
About 2.7 million, or 98 per cent, of all existing small businesses, would be eligible as a result of the change, Prime Minister Anthony Albanese said.
