Loud voices in the debate over Labor's capital gains tax reforms include a diverse range of individuals and groups, from mortgage brokers to billionaires. Here's a look at who is leading the charge and what is at stake for them.
1. Real Estate and Mortgage Industry
Among the loudest voices against the tax changes are those who profit from real estate and mortgages. Billboards reading "Stop the Ambition Tax" appeared across Canberra, paid for by Sydney mortgage broker Joseph Daoud. Daoud hired Patrick Blacker, a former communications staffer for New South Wales Liberal frontbenchers, to run the campaign. Blacker clarified that the campaign idea and social media content originated from Daoud, with no coordination with politicians.
Other property industry groups, including the Property Investment Professionals, Housing Industry Association, Master Builders Association, Real Estate Buyers Agents Association, and the Real Estate Institute of Australia, have also opposed the reforms. Ray White, the country's largest real estate agency, warned the policy would worsen the housing crisis and harm vulnerable renters. Meta ad data shows property companies accounted for 10 of the 13 highest-rating ads mentioning "CGT" after the budget.
2. The 47% Equity Meme's Creators
Business owners have circulated AI-generated selfie memes claiming Prime Minister Anthony Albanese has taken over 47% of their business. The meme originated from Julian Fayad, founder of LoanOptions.ai and a former United Australia Party candidate. Fayad said he did not plan for the meme's viral spread, calling it an organic reaction from small business owners. Frank Greeff, founder of Realbase, promoted a similar meme but acknowledged its inaccuracy, noting that not all businesses face a 47% tax. Greeff sold Realbase for $180 million in 2022 but only 10 of 400 employees owned shares at the time. He now runs a calendar AI app with 10 of 11 employees as shareholders.
3. Venture Capitalists Set to Lose Tax Breaks
Venture capital partners, who receive bonuses taxed as capital gains rather than income, are early opponents of the reforms. Paul Bassat of Square Peg has criticized the changes since before the budget. Ben Grabiner of Side Stage reportedly led a group of 20 tech founders against the reforms. Leigh Jasper of Glitch Capital cheered on online criticism from members of his community, including partner Sam Kroonenburg and Thomas Kelly, founder of AI health app Heidi. Kelly has engaged with the offices of MP Andrew Charlton and Treasurer Jim Chalmers, arguing that startups should not be unintended casualties of tax reform.
4. An Ex-Labor Adviser and Friends
Lachlan Harris, a former adviser to Kevin Rudd, has urged business to resist the reforms and lobbied government ministers. Harris, whose parents founded Harris Farm, has spoken to MPs and ministers about his concerns. He first spoke out in Nine newspapers on May 19, followed by an open letter from 40 founders under 40 on May 20 and a joint statement from 10 female founders on May 21. On May 22, Labor frontbencher Andrew Charlton echoed startups' concerns, noting the new regime may not work well for those with low capital bases. Harris and Charlton worked together in Rudd's office, but Harris declined to say if they discussed the reforms. David Liston organized the 40 under 40 letter, and Genevieve Taubman led the female founders letter, both claiming their campaigns were independent.
5. Longtime Opponents of Labor Tax Reform
Well-funded opponents of past Labor tax proposals have also rallied. Geoff Wilson, founder of Wilson Asset Management, led public criticism before the changes were announced and sought investor support for a petition. Wilson, worth an estimated $891 million and a distant relative of Shadow Treasurer Tim Wilson, previously opposed Labor's franking credits reforms and superannuation tax changes. Prime Minister Albanese called Wilson a "political participant," but Wilson said he has been bipartisan. Mining billionaire Gina Rinehart has also spoken out, arguing the CGT changes would discourage mining and job creation, forcing investment overseas. Her company, Hancock Prospecting, has significant investments in the US and Saudi Arabia.
Labor has stood firm, arguing the old CGT system pushed money into housing rather than productive businesses. Even some critics, like venture capital partner David Petre, say the blowback has been excessive, calling out wealthy complainers. Former Prime Minister Paul Keating backed the reforms, calling the changes marginal and unlikely to thwart entrepreneurial initiative.
