Labour’s proposed changes to the capital gains tax (CGT) discount have drawn fierce opposition from real estate and investment funds, with critics employing AI memes and airport billboards alongside traditional lobbying. The reforms aim to reduce the tax break on asset sales, which Labour argues has funnelled money into housing rather than productive business ventures.
Among the loudest opponents are individuals with direct financial stakes in the current system. Some have a history of opposing Labour, while one is a long-term Labour insider. Despite the backlash, Labour has stood firm, insisting the old CGT system discouraged entrepreneurship.
Even some critics of the reforms have questioned the intensity of the opposition. Venture capital partner David Petre told the Australian Financial Review: “I’m just so over rich people who’ve made money complaining about tax rates. I call complete bullshit that founders or employees are saying they are going to move overseas because of tax.”
Former prime minister Paul Keating, while critical of Labour’s foreign policy and Aukus stance, has backed the tax reforms. He told Guardian Australia: “The shift in capital taxation under the new arrangements is so marginal that no entrepreneurial initiative is likely to be thwarted by it.”
