Independent senator David Pocock has called for changes to proposed capital gains tax (CGT) reforms, warning they could drive tech investment offshore. The warning comes as Prime Minister Anthony Albanese laughed off an AI-generated meme campaign from startup founders, thanking them for 'very flattering' doctored photos of him working in their businesses.
The federal budget proposed replacing the 50% tax discount on profits with cost-base indexation and a minimum 30% tax rate, affecting profits from selling properties, shares and other assets. Tech entrepreneurs have protested using AI-generated images of Albanese, arguing the changes could push startups overseas or discourage risk-taking.
Pocock, representing the ACT, wrote to Treasurer Jim Chalmers urging a rethink. 'The government needs to do the deep consultation required to get this policy right so any changes don’t drive investment offshore,' he said. He suggested strengthening favourable treatment for founder equity, employee share programs and venture capital.
Independent MPs Allegra Spender, Monique Ryan and Sophie Scamps also backed broader tax reforms but warned of unintended consequences for startups. Spender held a roundtable with founders and suggested CGT revenue should fund income tax cuts. Ryan called for concessional rates for company founders and early employees, warning against making Australia 'one of the worst places in the developed world to realise a capital gain.'
Chalmers has said the government is still consulting on the changes, not ruling out a carveout for new businesses. The AI meme trend grew over the weekend, with images depicting Albanese as a tradesman and hairdresser, but the government has downplayed the campaign.
