Housing Minister Clare O’Neil has committed to a swift resolution regarding which individuals and businesses will be eligible for exemptions from the proposed changes to the capital gains tax (CGT) discount.

The government plans to replace the current 50 per cent CGT discount with a system adjusted for inflation, which could particularly affect small businesses that start with minimal costs and expand quickly.

Prime Minister Anthony Albanese and Treasurer Jim Chalmers are consulting with the tech sector, small business advocates, and farmers to ensure the new system is fair.

Despite these consultations, any exemptions are unlikely to be reflected in legislation due by the end of June, with further changes expected in a second legislative tranche later this year.Lobby groups representing larger businesses are concerned about potential divisions if exemptions for small businesses are granted.

Greens Senator David Shoebridge has proposed limiting tax breaks for investors with multiple properties, while the government has confirmed that negatively geared properties acquired before the May 12 Budget will retain their status.The Coalition has opposed the tax changes, promising to reverse them and index marginal tax thresholds if elected.The government maintains that the CGT changes aim to balance long-term fairness without causing immediate disruption to household budgets.