Treasurer Jim Chalmers has conceded Labor’s sweeping reforms to the tax system could have a negative impact on businesses, amid fears the proposed concessions do not go far enough. This week the Australian Investment Council said the government’s Innovative Business CGT concession was “too narrow, too complex and won’t help start-ups to scale”. However, Mr Chalmers pointed to the government’s “generous” carve-outs earlier this month, increasing the turnover threshold for small businesses to be eligible for the 50 per cent active asset CGT exemption from $2m to $10m.Asked directly whether the changes would negatively impact small businesses, Mr Chalmers told ABC Insiders those with an eligible turnover threshold would “at the very least” be among those better off.“For all of the others, it depends on the inflation rate. It depends on the marginal tax rate of the person who owns the small business,” Mr Chalmers said.“Some will be better off, for example, in periods of higher inflation. The inflation measure will be more helpful to them.”Minns’ tax warning to ALP rank-and-fileLabor’s rank-and-file have been warned by NSW Premier Chris Minns that any deliberations on hiking taxes should not be solely about raising revenue, and instead focus on growing the economy as a whole. Asked about the possibility of branch members pushing for a federal white paper at the forthcoming state conference, Mr Minns told Sky News Sunday Agenda that Labor had to be “really careful” of opening up a further debate on tax. “There’s a lot of things that state governments and federal government have got to focus on, in terms of selling what we’ve already announced, and that should really be the focus,” he said. Any prospective deliberations within Labor on revenue and taxes would need to factor in “that all of our future spending in the out-years are predicated on a growing economy … on expanding the pie, and that has to be a big part of our future promise”, Mr Minns warned. His remarks come days after federal Labor passed its controversial changes to the capital gains tax, scrapping the existing 50 per cent discount for an inflation-indexation model with carve-outs for small business and the start-up sector. Mr Minns conceded he “hoped” the changes would not stifle business and innovation, especially in the NSW economy where he noted “the majority of businesses in the (technology) space reside and live and have grown”. “We want to see it grow into the future … I’m very hopeful that you see that sector of the economy expand in the years ahead,” he said. Businesses ‘in tears’ over CGT changes: Leeser However, the Coalition has accused the government of botching its approach to the reform which applies the inflation-indexed model indiscriminately across asset classes including property, shares and small businesses without exemptions. Liberal frontbencher Julian Leeser claimed people in his Berowra electorate were distraught as the government celebrated its passing of the legislation through parliament this week with the support of the Greens. “People in my electorate, the small business roundtables that I have hosted, were in tears because they played by the rules, they have worked hard, they have risked everything and suddenly Labor pulls the rug from under them,” he told Sky News Australia. “So we will not let up, and Australians will not let up, because Labor lied, and they brought in taxes that are hurting ordinary Australians. The government’s reform to the capital gains tax and negative gearing broke a pledge made by Anthony Albanese who ruled out touching the tax settings ahead of the last federal election. Both the Prime Minister and Mr Chalmers have since conceded the government had changed its position but have not gone as far as to describe the changes as a broken promise.