Changes to the capital gains tax will lower productivity and make Australia less competitive, business groups argue, as the contentious budget measures go under the microscope.
A Senate inquiry into the tax changes will hold its first day of hearings on Monday.
Under the changes, the 50 per cent discount for capital gains tax will be replaced with a rate tied to inflation and a 30 per cent minimum, while negative gearing will be limited to new houses only from July 2027.
In a joint statement issued ahead of the inquiry, business groups warned the changes were being rushed through and would discourage investment.
The statement from the Australian Chamber of Commerce and Industry, AI Group, the Business Council of Australia and the Council of Small Business Organisations Australia said the changes must be rejected.
