Tech entrepreneurs have used AI-generated images of Prime Minister Anthony Albanese to protest against proposed changes to capital gains tax (CGT), warning that higher taxes could drive startups overseas. The images, shared on social media, show Albanese in various workplace settings, such as coding, sleeping in an office, or working out, with captions like 'He’s having a great time with his new 47% equity.'
The federal government plans to replace the current 50% CGT discount with cost-base indexation, taxing profits after inflation at a minimum 30% rate. Critics argue this will reduce incentives for founders and employees who rely on equity stakes. Jacques Greeff, founder of Kinso, said the changes make it harder to attract talent and encourage risk-taking. Julian Fayad of LoanOptions.ai warned that countries like Singapore and the UAE offer better incentives, making Australia less competitive.
The Tech Council of Australia warned that startups could become 'collateral damage,' while shadow treasurer Tim Wilson raised concerns about 'founder flight.' Janine Allis, co-founder of Boost Juice, said the changes would discourage innovation. However, Albanese defended the budget, citing R&D incentives and asset write-offs, and Treasurer Jim Chalmers confirmed ongoing consultation with the tech sector. The Tech Council welcomed other budget measures but sought further talks on CGT.
