Federal government under pressure from within to consider budget impact on small businesses

The federal government is facing more pressure from within its own ranks to further consider how the federal budget will impact on small businesses.

Transcript

00:01The government will form legislation that will look at the various changes as part of

00:07the budget.

00:07So the capital gains tax discount, the change there, negative gearing, they'll form legislation

00:13that they're hoping to pass through parliament as quickly as possible.

00:16The legislation will be where a lot of this detail is sort of sorted out after further

00:21consultation.

00:22But interesting today to see Labor backbencher Jerome Laxell come and speak out, saying that

00:27more work needs to be done on the budget's impact on small businesses and startups.

00:33The government has certainly been under pressure this week.

00:36There's been a rather successful social media campaign where we've seen memes and AI generated

00:43videos of the prime minister and the treasurer with small businesses saying that as a result

00:49of the changes to the budget, they feel like the government's going to get a big stake in

00:53their business.

00:54The government has of course disputed that, but nonetheless, MPs including Jerome Laxell

01:00do admit that they're getting some bad feedback from members within the community about the

01:05budget.

01:05Now, Energy Minister Chris Bowen was asked about it this morning.

01:10I think this was always going to be a controversial budget.

01:13Always, when you're undertaking big tax reforms, there's always going to be, some people are

01:19upset by that.

01:20I think the government knew that.

01:21I think you can't not tackle big reforms that are important for intergenerational equity and

01:28giving younger Australians a fair go at aspiration.

01:30The aspiration to own your own home is at the core of the Australian aspiration.

01:34This government is tackling that issue.

01:36And yes, that will sometimes be controversial, but big reforms are controversial and they're

01:42worthwhile.

01:44So, Minister Bowen there, as many colleagues of his have this week, pointing out that the

01:48changes within the budget are done to supposed to help more young people to get into the housing

01:54market.

01:54But they have come under much scrutiny because those changes, particularly to the capital

01:59gains tax discount, apply not just to investments in homes, but investments in assets more broadly,

02:06which is what they're facing a lot of criticism for this week and probably will continue to

02:11as well.