Albanese's 2026 CGT Reforms: What Small Business Owners Need to Know
The Albanese Government has announced further CGT concessions for small businesses and startups. Here's what it means if you're a PAYG employee or business owner using a novated lease.
On 23 June 2026, the Albanese Government released further implementation details for its tax reform package, including expanded CGT concessions targeting small businesses and startups. According to the Treasury Ministers release [[Source 1]](https://ministers.treasury.gov.au/ministers/Jim-Chalmers-2022/media-releases/Tax-reform-implementation-for-small-business-and-startups), all 2.7 million active small businesses — representing 98 per cent of all active businesses in Australia — will be eligible for these concessions.
The announcement also flags a forthcoming consultation paper, meaning some details are still being settled. The core legislation is currently before the Senate. This is real policy movement, but not yet fully enacted law — so read the fine print before making decisions based on it.
What this means for novated lease customers
If you're a PAYG employee thinking about a novated lease, this reform isn't directly targeted at you — it's aimed at small business owners and startup investors. But there's an indirect angle worth understanding.
Many millarX customers are sole traders, small business owners, or employees at startups who also draw a salary. If that's you, the expanded CGT concessions could meaningfully change your overall tax picture — which in turn affects how valuable pre-tax salary packaging strategies like novated leasing are as part of a broader financial plan.
The broader tax reform package also signals the Government's ongoing intent to better align the tax treatment of labour and asset income [Source 1]. That framing matters: novated leasing is one of the few remaining mechanisms that lets ordinary PAYG workers access pre-tax treatment on a major asset (a car). The political will to preserve that benefit appears intact for now — but it's always worth staying across Budget announcements.
Common questions
Do these CGT changes affect the FBT exemption on electric vehicles?
Not directly. The EV FBT exemption sits under separate legislation and was not mentioned in this announcement. The CGT concessions announced here are specifically for small businesses and startups disposing of eligible assets.
Can a small business owner use a novated lease?
Yes — if you're paid a PAYG salary through your own company or a business that employs you, a novated lease is available to you. The arrangement runs between you (the employee), your employer entity, and the finance provider.
Is this legislation already law?
No. As of the announcement date, the core legislation was still before the Senate and a consultation paper was being released. Always check the current status before acting on proposed tax changes.
Who should I speak to about how these changes affect my situation?
A registered tax agent or accountant is the right person for CGT-specific advice. millarX focuses on the novated lease structure itself — we're ACL-licensed (ACL 569484) and AFCA-registered, but we're not tax advisers.
Why does the Budget matter for novated leasing?
Novated leasing benefits flow from specific tax legislation — FBT rules, income tax treatment of salary packaging. Budget announcements and tax reform packages can change the rules, so it pays to keep an eye on what Canberra is doing.