Tech entrepreneurs warn CGT discount removal will hurt startups
Updated
Updated · ABC News · May 8
Tech entrepreneurs warn CGT discount removal will hurt startups
5 articles · Updated · ABC News · May 8
Ahead of Tuesday's federal budget, Australian founders and investors say a mooted shift to pre-1999 indexation for shares and property could drive talent overseas.
Paul Bassat, Alan Jones and Sally-Ann Williams said employee share schemes are crucial for attracting staff to risky startups, and higher effective tax on gains would weaken the sector.
The government has not confirmed the change or any grandfathering, while tax experts warn carve-outs for startups would add complexity; a business loss carry-back scheme may also return.
Will a tax fix for housing affordability inadvertently cripple Australia's tech innovation future?
Is the government's tax overhaul a genuine fix for housing or a blow to everyday investors?
"Australia’s 2026 Capital Gains Tax Overhaul: Catastrophic Risks for Startups, Tech Talent, and Innovation"
Overview
Australia's startup and tech sector faces serious warnings as the government plans to abolish the 50% capital gains tax discount, returning to an older, inflation-indexed system. Industry leaders fear these changes will spook investors and founders, potentially setting back the startup ecosystem by a decade or more. The upcoming federal budget is expected to introduce these reforms, with a possible one-year grace period for new assets. Overall, the sector is deeply concerned that these tax changes could have disastrous effects, undermining investment and talent retention across the innovation landscape.