Chambers unite on damaging taxes to business

Australia’s business chambers have urged the Federal Government to reconsider its tax increases that would hurt businesses and instead pursue reforms that support investment and productivity.

The tax policy changes proposed in the 2026-27 Federal Budget have sparked wide concern among the business community, particularly regarding the impact on small businesses.

CEOs of the Australian Chamber of Commerce and Industry (ACCI), CCIWA and other chambers from New South Wales, Victoria, Queensland, South Australia, Tasmania, the Northern Territory and Canberra have called on the Government to scrap the changes to capital gains tax (CGT) and discretionary trusts.

READ MORE: Tax changes explained

“The business community is shocked that the Government has decided to impose major new taxes on business through capitals gains tax and trusts,” said ACCI CEO Andrew McKellar.

“There is no economic rationale for piling more tax on businesses, and the government must adopt a more comprehensive approach to tax reform.”

CCIWA CEO Will Golsby said now was not the time for WA bit hit with a tax hike.

“Now more than ever, businesses need certainty,” he said.

“In Western Australia we are on the cusp of significant opportunities including critical minerals, defence and energy investment.

“These changes, on the back of the significant impact of fuel disruption, will make Australia a less attractive place to invest while driving down productivity and squeezing small and family businesses.”

The chambers of commerce said:

• The Government’s stated objective is to address housing affordability issues, but higher taxes on business investment do not contribute to this objective.
• The measures fail to recognise that for Australia’s future prosperity, investment in business should be supported, not penalised.
• Penalising investment in small and medium businesses will undermine their productivity and ability to compete.
• The biggest losers under the new system will be the most productive businesses in every industry, making the proposed CGT change a tax on productivity.
• An enormous number of small and medium businesses use trusts, and the proposal to drive up tax on these businesses will damage their productivity.
• Comprehensive tax reform is necessary, but this needs to recognise the need for Australian businesses to be more competitive and productive.

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