Treasurer Jim Chalmers and Prime Minister Anthony Albanese have given no indication they will wind back proposed capital gains tax (CGT) changes despite warnings they will 'kill startups'. The Labor government remains in consultation with the tech sector but offers no concessions, prompting concern from entrepreneurs.
Canva Co-Founder Speaks Out
Cliff Obrecht, co-founder and COO of Canva—a graphic design software company valued at over $60 billion—said the CGT discount is critical for entrepreneurs. 'The capital gains discount has played an important role in encouraging this,' Obrecht told Guardian Australia. He noted the company is working with the government to 'iron out all of the details' to ensure Australia remains a great place to build global companies.
Government's Position
Prime Minister Albanese defended the changes, stating they only apply when businesses or stocks are sold, not as an ongoing tax. 'There are campaigns being run from the right-wing parties and their allies to distort some of what’s being offered,' he said. Treasurer Chalmers echoed this, emphasizing that small business exemptions remain intact.
Critics' Concerns
Shadow Treasurer Tim Wilson claimed the changes would 'kill startups,' arguing they discourage risk-taking. The Tech Council of Australia warned that early-stage startups offering equity or stock options could be affected. Some founders have spread memes claiming a 47% tax rate, though Assistant Minister Andrew Charlton called this 'absolutely not true.' He explained that tax would be on profits adjusted for inflation, creating a fairer playing field for all assets.
Consultation Ongoing
Government sources remain tight-lipped on whether concessions will be made for new businesses. While some economists and Labor MPs expect extra concessions, senior sources say there is no guarantee. Obrecht confirmed the sector is keen to continue constructive discussions with the government.
