Tech Founders Mock Albanese With AI Images Over 47% CGT as Government Weighs Startup Carve-Out
Updated
Updated · The Guardian · May 17
Tech Founders Mock Albanese With AI Images Over 47% CGT as Government Weighs Startup Carve-Out
4 articles · Updated · The Guardian · May 17
AI-generated images of Anthony Albanese as a startup "founder" spread after budget night, with tech entrepreneurs using the posts to protest proposed capital gains tax changes they say would slash rewards for risk-taking.
The plan would replace the 50% capital gains discount with inflation indexation and impose a minimum 30% tax rate, a shift founders say would make employee equity less attractive and push startups and talent overseas.
Jim Chalmers said consultations with the VC and startup sector were continuing, and Albanese said he wanted to support innovation, raising the prospect of a carve-out for early-stage companies.
The Tech Council of Australia warned startups could become "collateral damage," while opposition figures and founders including LoanOptions.ai's Julian Fayad and Roll's Alfie Robertson argued the changes risk "founder flight."
Economists split on the issue: Saul Eslake said startups with little cost base may warrant more generous treatment, while Chris Richardson argued R&D offsets and write-offs are better than preserving broad CGT concessions.
As Australia raises taxes on founders, which rival nations are best positioned to lure away its top tech talent?
Are R&D grants a better innovation fuel than tax breaks, or is Canberra misreading what truly drives startups?