What the 2026 CGT Changes Mean for Small Business Owners
The Albanese Government has announced expanded CGT concessions for 2.7 million small businesses. Here's what it means if you run a business and use a novated lease.
On 23 June 2026, the Albanese Government released further implementation details for its tax reform package — including expanded capital gains tax (CGT) concessions for small businesses and startups (Source 1). The announcement follows post-Budget consultation and is designed to give investors and business owners more certainty heading into the next legislative cycle.
According to the Treasury Ministers release [Source 1], all 2.7 million active small businesses — representing 98 per cent of all active businesses in Australia — will be eligible for these concessions. That is a broad reach, and it matters if you're a business owner, a sole trader, or someone whose employer structure affects how your salary packaging arrangements are set up.
What this means for novated lease customers
If you're a PAYG employee at a small business, this announcement doesn't change how a novated lease works for you day-to-day — your FBT treatment and pre-tax salary contributions remain governed by existing ATO rules. But context matters: when the government is actively loosening tax friction for small businesses, employers are more likely to be open to offering novated leasing as part of a broader employee benefits package.
For business owners and sole traders who also draw a salary, the combination of improved CGT outcomes at exit and ongoing pre-tax vehicle benefits through a novated lease can stack meaningfully — though your specific position depends on your structure and advice from your accountant. millarX works alongside your existing advisers rather than replacing them.
The government has flagged a consultation paper as the next step [Source 1], so some detail is still to be confirmed. We'll update this page as the legislation progresses through the Senate.
Common questions
Does this CGT announcement change the FBT rules on my novated lease?
No. FBT treatment on novated leases is a separate part of the tax code and hasn't changed with this announcement. The CGT concessions relate to asset disposals by small businesses, not to salary packaging arrangements.
I'm a sole trader who also pays myself a salary. Can I get a novated lease?
It depends on your structure. Novated leasing requires a tripartite agreement between you, your employer, and a financier — which can get complicated when you're both the employee and the business. Talk to us and your accountant about whether your setup qualifies.
When will the new CGT concession rules take effect?
The government has released a consultation paper for further input, meaning the final rules are still being legislated. According to the Treasury Ministers release [Source 1], core legislation is currently before the Senate. Check back here or follow ATO updates for confirmed effective dates.
What counts as a 'small business' for these concessions?
The government's announcement covers all 2.7 million active small businesses — around 98 per cent of all active businesses in Australia — but the precise eligibility thresholds will be confirmed through the consultation paper and final legislation [Source 1].
Should I wait until the laws pass before arranging a novated lease?
Your novated lease decision doesn't need to be tied to this CGT announcement. The two are largely independent. If you're ready to explore a vehicle, there's no reason to wait — FBT exemptions for eligible EVs and the general pre-tax benefits of novated leasing are already in place.