Updated · The Australian Financial Review · May 31
Australia Scraps 50% Capital Gains Discount, Stirring Fears of 47% Start-up Exit Tax
Updated
Updated · The Australian Financial Review · May 31
Australia Scraps 50% Capital Gains Discount, Stirring Fears of 47% Start-up Exit Tax
3 articles · Updated · The Australian Financial Review · May 31
A meme claiming the Australian government will take 47% when founders sell a start-up has become the rallying cry against plans to remove the 50% capital gains tax discount on shares.
The criticism centers on entrepreneurship: opponents argue a higher capital gains tax rate would weaken incentives to build and eventually sell start-ups.
The meme overstates the policy’s reach, though, because small businesses can still access separate capital gains tax concessions.
That leaves the debate focused less on the viral slogan itself than on whether changing share-sale tax treatment would deter future founders and investors.
As Australia overhauls capital gains tax, is it trading future innovation for immediate revenue and perceived equity?
Will Australia's bid for a 'fairer' tax system inadvertently drive its best entrepreneurs and their capital offshore?
Beyond the higher tax rate, will the sheer complexity of new CGT rules become the biggest deterrent for Australian investment?