The federal government has announced several exemptions to its proposed tax changes following industry and public backlash.

Prime Minister Anthony Albanese confirmed that genuine testamentary discretionary trusts, commonly used for inheritance and estate planning, will be exempt from the proposed 30% minimum tax.

The government has also expanded access to small business capital gains tax concessions, lifting the turnover threshold from $2 million to $10 million. It says this will allow 98% of Australian businesses to qualify for the concession.

A new tax concession for innovative start-ups is also being developed, with consultation to follow.

While the broader changes to negative gearing and capital gains tax remain central to the government’s housing policy, the latest exemptions show some willingness to adjust the legislation before it is finalised.