Businesses with turnover of up to $10 million will be able to claim 50 per cent off their capital gains tax.

Labor is considering including capital gains tax exemptions in the budget legislation it will ram through the Senate in a bid to shut down political blowback.

Around 2.7 million small businesses will be offered a carve-out from controversial tax changes.

The federal government has consulted with small businesses and startups over contentious elements of its budget tax proposal.

Labor has granted tax concessions to small businesses, start-ups and testamentary trusts, in a partial surrender following a backlash against its contentious budget tax changes.

Businesses with turnover of up to $10 million will be able to claim 50 per cent off their capital gains tax.

Businesses with turnover of up to $10 million will be able to claim 50 per cent off their capital gains tax.

Labor’s contentious tax hikes on capital gains and trusts have been wound back, following a sustained attack on the measures and drops in the polls.

Startups and testamentary trusts to receive carve outs after criticism of Labor’s CGT changes