A high-profile teal MP is pushing to exempt technology companies from looming capital gains tax changes after meeting with industry bosses, despite appearing at a press conference during the same week calling out big tech's political sway.
Background on CGT Reforms
Under Labor's 2026 Federal Budget reforms, the current 50 per cent CGT discount will be scrapped and replaced with an inflation-based model that taxes only 'real' gains. The Tech Council of Australia warned the proposed changes could dramatically reduce the payoff for founders, early employees, and investors who take major risks building start-ups.
Tech Council's Concerns
The Tech Council, representing many of Australia's largest technology companies including Atlassian, Amazon, Apple, Canva, Google, Microsoft, Airwallex, Stripe, eBay and OpenAI, is led by Atlassian founder Scott Farquhar. A Square Peg co-founder stated: 'It will literally set back the start-up community in Australia a decade or more. The next generation of founders, instead of building the next Canva in Australia, or the next Afterpay in Australia, it is going to be built in the Bay Area, or Singapore, or somewhere else.'
Spender's Shift in Position
The growing backlash from the tech sector appears to have prompted a rethink from Teal MP Allegra Spender, who has close ties to Farquhar. Her own policy white paper, released in March, proposed cutting the capital gains tax discount from 50 per cent to 30 per cent, with no carve-outs for specific industries. But after meeting with Farquhar last week, Spender said the CGT discount should be reduced to 35-40 per cent.
A spokesperson for Spender said: 'The indexation model of CGT taxation is not suitable for all low-capital businesses and doesn't reflect the risk Australians take when they start and grow businesses. We need to support and encourage that entrepreneurialism. She also has concerns that proposed CGT changes create distortions in investments and don't reflect the risks people take when making investments. Spender believes that we should reduce marginal tax rates, including at the top end, and pay for that by reducing tax discounts on assets, including lowering the CGT discount from the current rate of 50 per cent to a lower level, such as 35 per cent to 40 per cent.'
Spender's Ties to Farquhar
Spender and Farquhar, who is estimated to have a net worth of $21 billion, have known each other for more than a decade. She also sponsored a parliamentary access pass for Farquhar, which she has disclosed. Farquhar is also a major donor to Climate 200, the campaign group that helped fund several teal MPs, and he has given more than $3.5 million in total to it, according to donation data. In turn, Climate 200 directed more than $700,000 towards Spender's campaigns.
Contradictory Stance
Despite her close links to the tech sector, Spender recently appeared alongside fellow independent Zali Steggall, who criticised the influence of major industries on government as the pair promoted a potential alliance of teal MPs. Ms Steggall said on Monday: 'Too often, it is big tech, big mining, big industry that has the ear of government. And the big lobby groups, and not enough community industries.'
Criticism from Former PM Keating
Former prime minister Paul Keating on Wednesday singled out Canva, arguing those who profited from the tech giant should not be exempt from the proposed CGT changes. 'Wealthy people are out there now arguing against the government's change. They want to split off start-up capital and shares as if the individuals commentating have not made a feast of it already. They nominate tech and start-ups. But if a tech start-up fires, like a Canva, the value acceleration and level of wealth makes any discussion of the tax rate absolutely secondary.'
