A coalition of peak business groups representing businesses of all sizes that employ millions of Australians have united to oppose the Federal Government’s proposed capital gains tax changes.

The Australian Chamber of Commerce and Industry (ACCI), Australian industry Group (AI Group), Business Council of Australia (BCA), and the Council of Small Business Organisations Australia (COSBOA) are calling on the Parliament to reject the “rushed legislation”, which they say will “discourage investment at a time when Australia needs it most”.

“At a time of growing global competition, Australia cannot afford policies that make us a less attractive investment destination. Instead, we should be competing to attract the capital our projects and businesses need to grow the economy and fund the services Australians rely on,” the groups said in a join statement.

“If passed, these changes will affect businesses of every size, from companies investing in major projects to small and family-run businesses seeking to grow, create jobs and support their local communities.”

With the changes not set to come into effect until 1 July 2027, the groups says there is no reason to rush reforms of this significance.

“The speed of this process raises serious concerns about whether any genuine economic impact analysis has been conducted.”

The organisations joined the Government’s Economic Reform Roundtable last year in to examine broad reform aimed at lifting productivity and making Australia more competitive. The approach taken in this legislation is “fundamentally inconsistent with that process and its objectives”, according to the business groups.

“We urge the Parliament not to proceed with the legislation and consult with the business community in good faith to fully assess its consequences,” the joint statement reads.

“Tax reform should be approached holistically, considering the interaction between personal, company, consumption and state taxes as part of a long-term plan. We cannot risk ad hoc changes and the unintended consequences they bring across the economy.

“The right tax settings encourage investment and innovation, drive productivity and deliver higher living standards for current and future generations. We stand ready to work with the Government to get there.”