Labor will press ahead with its controversial capital gains (CGT) tax overhaul as it continues consultation with businesses, despite privately signalling any carve-outs will remain limited.The federal government plans to introduce legislation entwining multiple budget measures to the House of Representatives on Thursday.They include a $250 tax offset for workers, a $1,000 standard tax deduction, and much-scrutinised CGT and negative gearing changes.The linking of the four elements sets up a political wedge for the Coalition, which had vowed to oppose tax increases but planned to support the $250 offset.Prime Minister Anthony Albanese said he expected the tax bill would go to the Senate later in June, with Labor then intending to revisit "implementation" of the CGT changes at a later date after consultation with business groups.In the two weeks since unveiling the plan to replace the 50 per cent CGT discount with one indexed to inflation, senior Labor figures have indicated any carve-outs or exemptions will be tightly restricted to the tech startup sector.But business groups have warned the selective application of carve-outs "here and there" would be "wholly inadequate".Mr Albanese announced on Monday that Labor would consult with small business groups to develop a position paper ahead of a second tranche of legislation dealing with CGT carve-outs, sparking optimism he had left the door open to broader exemptions.However, Labor sources have continued to manage expectations with private warnings about the likely narrow scope of any carve-outs.Businesses want 'complete reset' on CGT proposalBusiness groups have argued Labor's proposed CGT changes would discourage investment and entrepreneurship by increasing the tax paid when a company was sold, potentially pushing investment and talent offshore.Australian Chamber of Commerce and Industry chief executive Andrew McKellar said rather than focusing on carve-outs, the entire notion of damaging the business community should be rejected."We are concerned carve-outs here and there would be wholly inadequate," he said."What is needed is a complete reset."Andrew McKellar has urged the government to take a pause. (ABC News: Matt Roberts)Mr McKellar said the legislation should be paused to "avoid unintended consequences" for businesses until the consultation was complete."There is no need to introduce legislation that is damaging to business and rush it through parliament," he said."We are all in favour of tax reform, but it has to be reform that benefits the economy, and you don't do that by taxing business investment."Business Council of Australia chief executive Bran Black said he remained concerned the proposed CGT and negative gearing changes made an "already uncompetitive tax system less competitive" at a time the country was "fighting hard" to attract investment.He welcomed a "proper" consultation process, including a parliamentary inquiry, as the correct next step."These are major changes to the tax system and the parliament should take the time to get them right," Mr Black said.Labor depending on Greens for supportMr Albanese defended the two-stage plan when asked why Labor appeared to be bolting on changes "late"."If you go back and have a look at tax reform and the way that it's been implemented, this is the normal way," he said.He said Labor was putting forward tax changes with "clear objectives"."The main objective is to not lock out this and future generations of Australians from ever getting a roof over their head," he said.The government will be relying on the Greens' support to pass the legislation through the Senate.Greens leader Larissa Waters said the party would wait to see the legislation before making any decisions about carve-outs for some sectors, or whether to back a Coalition push to refer Labor's proposal to a lengthy inquiry."Lots of people have lots of opinions. We're all waiting to see what the government actually puts in the bill and then we can have a close scrutiny of what's in it," she said.Labor seeks to wedge Coalition on taxBy entwining the negative gearing and CGT changes to the tax breaks for income earners, Labor is hoping to force the Coalition to vote against the $250 Working Australian Tax Offset (WATO) due to start in mid-2028.As opposition leader in 2019, Mr Albanese once railed against what he called "wedgislation" put forward by the then-Coalition government.Angus Taylor has accused the government of not understanding what it takes to run a small business. (ABC News: Marcus Stimson)Speaking before Labor confirmed the tax measures would be tied together in the one bill, Opposition Leader Angus Taylor said the government "doesn't get" what running a small business was like."When you run a small business, your family and home life blend into your business, your nights blend into your days, your weekends blend into your weekdays, because everything you do is so focused on making that business work," he said."And now we have a government who wants to smash all of that, a government that just does not understand what it takes to run, invest, and grow a small business."This is a government who simply doesn't get it."