My question is for the Treasurer. The Treasury acknowledges that indexation on CGT has limitations when applied to low- or zero-cost based businesses. That describes every low-capital business built from nothing, but the fix, the innovative business CGT concession, only covers businesses that pass a narrow innovation test, leaving others who take huge risks to build medium and large businesses one of the world's highest tax rates on capital. Why won't the government just reduce the CGT discount on businesses to rebalance the tax system, rather than have this narrow carve-out?

I thank the honourable member for Wentworth. I acknowledge her interest and her input in this really important area of tax reform, and I acknowledge as well the other colleagues on this side of the House who've engaged constructively with our ambitious tax reform agenda. And it's a good time to ask the question, as the honourable member knows that only a couple of hours ago we introduced the legislation into this parliament for the innovative business carve-out in the CGT reforms and, alongside that, the reforms to the R&D tax incentive and some of the other important reforms in our tax package. That legislation recognises that our startup and innovation sector is a key driver of jobs and productivity in our economy. As the honourable member knows, in the lead-up to the budget and then publicly from budget night, we made it really clear that we would be consulting in a meaningful and genuine way about the best way to design the carve-out for innovative businesses. We were clear in the budget that we would have arrangements for startups with a low or zero cost base, and the targeted concession we're putting forward delivers on that commitment.

I acknowledge that the honourable member has a different view, but in our view we have struck the best possible outcome, the best combination of carve-outs and concessions which ensures that early investors in innovative startups will still receive a significant discount on a future capital gain. Our reforms mean that, for Australians looking to invest and grow their wealth, we've got concessions targeted at starting a new innovative business or investing in a new build. This is part of around $4 billion in tax cuts and tax concessions to incentivise and reward innovative businesses, startups and small businesses. In addition to that, as the honourable member knows, we're expanding the venture capital incentives. That's also in the bill that I introduced today—a very important part of our reform agenda. We're also strengthening the performance test to ensure that there are no unintended barriers to investments in areas like venture capital, an issue the honourable member has raised with me on other occasions.

To finish, I want to point out that across this package that we introduced today the government has run six consultation processes, and we've engaged with more than 500 submissions on these issues. This engagement has included round tables and bilateral engagements with peak business and industry associations, universities and academics, startups, incubators, innovation networks, life sciences firms, manufacturing, engineering, other key sectors and also members of the crossbench and of course members of the government. There'll always be a range of views about the best way to go about this. This consultation that we've done has made the reform package better, and that's why we put it to the parliament today.