The founder of Boost Juice has strongly criticised the Albanese Government's tax changes in the new Federal Budget, claiming they will cripple Australian small businesses. Janine Allis, 60, who launched the iconic juice chain in Adelaide in 2000 and has overseen its expansion to over 380 stores across Australia, expressed fears that Labor's modifications to the Capital Gains Tax (CGT) discount and negative gearing will discourage aspiring entrepreneurs from starting businesses in the country.
Changes to Negative Gearing and CGT
Under Labor's new policies, only individuals with existing negatively geared properties or those constructing new homes on vacant land will be eligible to claim expenses related to investment properties. Negative gearing enables property investors to deduct costs such as loan interest, maintenance, and rates from their taxable income. Allis argued that this change could lead to a decline in property investment and remove a crucial tool that ordinary Australians rely on to 'get ahead' and support their families. The CGT discount, which currently allows a 50 per cent reduction on profits from asset sales, will be replaced with indexation. This means the original purchase price of an asset will be adjusted for inflation, and tax will be applied to the profit relative to the inflated price. This policy will take effect alongside a minimum 30 per cent tax on gains from July 1, 2027.
Allis's Concerns
In a video released on Thursday, Allis warned that these changes could fundamentally alter the Australian spirit of enterprise. 'The changes potentially could, in my opinion, destroy the core of what Australians are,' she said. 'Australians are the people that wanna have a go. They want to have control over their own destiny and they want to have their own business or get ahead with an investment property.' She noted that Australia has one of the highest densities of small businesses globally, with approximately one business per ten people, but argued the new budget undermines this entrepreneurial culture. Allis emphasised the significant risks involved in starting a business, stating that most ventures fail, and highlighted the lack of incentive when assets like land are subject to a higher CGT of at least 30 per cent. However, she acknowledged that there are generous exemptions for small businesses.
'People need to remember that when you start a business, you put everything on the line and most (businesses) fail,' Allis said. 'If I started Boost Juice in July 2027...I would put my house on the line, put everything on the line, work my absolute butt off, risk everything, be away from family. To then eventually make a profit and give nearly 50 per cent to the government. Oh my god, that is just that is just so unfair.'
Consequences for Investment and Employment
Allis predicted two major outcomes from the tax changes. 'Number one - big businesses will not come here, it's too tax heavy, which means that we will not have opportunities for employment,' she claimed. 'Number two - we won't want to open businesses or start businesses because the risk of failure for reward doesn't add up.' She also criticised Prime Minister Anthony Albanese for breaking an election promise not to alter negative gearing and CGT systems. Albanese has defended the reversal, stating his government 'changed our position'. Allis argued that consistency is vital for business confidence. 'If you tell people on an election that you're not going to be touching negative gearing and capital gains tax, you have to stick with it,' she said. 'The reason being is that people make decisions in business based on what you tell them. If you don't tell the truth or you change your mind, it's too big a decision.'
Final Warning
Allis concluded by acknowledging potential backlash for her stance but warned that if the tax changes are implemented, 'the unintended consequences' would be 'horrific'. Her comments reflect growing unease among entrepreneurs regarding the government's fiscal policies.
