Treasurer Jim Chalmers and PM Anthony Albanese announce the tax reform changes today.

AUSTRALIA’s farmers have welcomed key changes to the Albanese Government’s tax reform package just days after failing to get an invite to a short Senate inquiry into associated legislative amendments.

Prime Minister Anthony Albanese today announced an increase to the turnover threshold for the existing small business 50 percent active asset CGT reduction from $2 million to $10 million.

“The details we’re announcing today are all about providing more clarity and confidence to investors, more support for small businesses, and more incentives for innovation,” Mr Albanese’s statement said.

The changes will mean all 2.7 million active small businesses and 98 percent of all active businesses will be eligible for the CGT concession, he said.

The government also released a consultation paper on the design of a 50 percent capital gains tax discount for early-stage investors including founders and employee share scheme participants of innovative start-up businesses.

It also confirmed that income from all types of testamentary trusts will be exempt from the minimum tax, including future discretionary testamentary trusts, with implementation details included in further consultation.

The National Farmers Federation said the decision to expand access to the key CGT concession is one of the most consequential wins for the NFF and its members following sustained advocacy, bringing the measure within reach of 99pc of farm businesses, or an extra 8700 enterprises.

NFF president Hamish McIntyre said the change would deliver real, tangible benefits for farming families.

“This is a meaningful result for farmers. It provides greater confidence when making long-term decisions about their business and their future,” he said.

“Farming is capital-intensive and often spans generations.

“These changes recognise that reality and ensure more farming families can access the support they need when transitioning assets, investing in productivity or planning for succession.”

The NFF said the small business 50pc active asset reduction is the most widely used of the four CGT concessions, allowing eligible businesses to reduce the taxable capital gain on active assets by half, in addition to other available discounts.

Mr McIntyre said the outcome reflected the value of strong industry advocacy and sustained, constructive engagement between the NFF, its members and the Federal Government.

“This is a clear example of what can be achieved when farmers speak with one voice, and when government listens and works collaboratively with industry.

“The NFF has worked closely with the Government and put forward a practical case for change based on how modern farm businesses actually operate.

“The government has listened to those concerns and acted, and that will make a real difference on the ground,” he said.

“While there may be more work to do to ensure the full suite of reforms meets the needs of farmers, this is a strong step forward.

“The fact this measure will be progressed through current legislation is critical, it gives farmers certainty now and allows them to plan ahead with confidence,” Mr McIntyre said.

NFF not invited to address Senate inquiry

The NFF said the concession result follows weeks of advocacy, working alongside members, the Treasurer’s office and other small business groups to ensure Australia’s tax settings better reflect the scale and structure of modern agricultural businesses.

However, before the government’s announcement today, the NFF disclosed that neither it nor any other farmer bodies were invited to address the Senate Economics Legislation Committee’s hearings as part of the (Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and a related bill) inquiry into the proposed tax reform changes. The public hearings were held on 15 and 16 June and the committee will present its report on 19 June 2026.

Before the latest proposed changes, Mr McIntyre said while the NFF has had welcome engagement with the government, it is disappointing that Australia’s 80,000 farm businesses have not had a clear voice, in-person, at the inquiry.

“Farmers are rightly concerned about what these changes could mean for investment, succession and the future of family farming.

“The (Economics Legislation) Committee has heard from the broader business sector, tech start-ups and mining and exploration.

“The missing voice is the sector producing the food and fibre every Australian relies on and the sector that is worth $100bn to the economy,” he said.

An NFF spokesperson said decisions about who is invited to appear at public hearings are at the committee’s discretion, noting that this is a government-led committee and there is no formal application process.

“While we made a submission to the inquiry and, as a key stakeholder representing a significant cohort of Australian businesses, would typically expect this to prompt an invitation to appear, invitations are ultimately determined by the committee.

“The committee may invite stakeholders it wishes to question or from whom it seeks further information to appear at public hearings,” the spokesperson said.

“It is not standard practice for participants in Senate inquiries to be provided with reasons for not being invited to appear.

“We have, however, met with the government on multiple occasions outside the inquiry to discuss our submission and position.”

The spokesperson said the NFF believed the inquiry hearing schedule should have been more extensive to allow more affected representative bodies to attend.

“Yes, many industry bodies share the view that more time is needed to consider and scrutinise these significant reforms.

“Other sectors invited to appear included business industry groups (ACCI, BCA, COSBOA), mining exploration, biotechnology/start ups.”

Sheep Central has put questions to the chair of the Senate Economics Legislation Committee Victorian Labor Senator Lisa Darmamin about the invitation criteria for the inquiry hearings.

VFF also welcomes tax concession change

The Victorian Farmers Federation said the decision to increase the turnover threshold for access to small business CGT concessions from $2 million to $10 million is a step in the right direction and will help deliver a fairer outcome for family farmers across Australia.

The VFF also welcomed confirmation that proposed minimum tax arrangements on trusts will not apply to testamentary trusts, providing certainty for farming families undertaking succession planning and intergenerational farm transfers.

VFF president Ryan Milgate said the announcements were a positive response to concerns raised by farmers and agricultural organisations, including the VFF following the Federal Budget.

“The VFF has consistently argued that the existing $2 million turnover threshold no longer reflects the realities of modern farming businesses.

“Many family farms exceed that turnover figure while still operating on tight margins and facing significant seasonal, market and input cost pressures,” he said.

“The previous threshold risked locking genuine family farming businesses out of concessions that were designed to support small business.”

Mr Milgate said the government’s decision demonstrated the value of listening to industry concerns and engaging constructively with the agricultural sector.

“We appreciate the Treasurer and the government taking on board the concerns raised by farmers and making changes that better reflect the structure of modern family farming enterprises.

“This outcome will help ensure more farming businesses can access important concessions that support investment, business continuity and succession planning.”