Investors warn funding could go offshore under contentious tax changes | The Business | ABC NEWS
The Albanese government is on a charm offensive, trying to combat a negative social media campaign from startups on the back of capital gains tax discount reforms in the federal budget.
Senior ministers have signalled the government is open to changes to the proposed laws, after investors and entrepreneurs warned that changes to the capital gains tax 50 per cent discount on all asset classes could have unintended consequences.
Entrepreneur Peter Dunne previously helped write laws on startups. He says he sees merit in reducing tax breaks to tackle generational inequality but wants the government to carve out startups so that people starting a business or investing in a new business don’t get taxed at the top marginal tax rate of 47 per cent when they make gains on the sale of shares connected with the business.
Treasurer Jim Chalmers has rejected suggestions the government is failing to sell its budget, saying that difficult reforms can be contentious.
The government is currently consulting with industry on the planned changes and is expected to introduce legislation in the coming weeks.
There are some in the industry, like venture capital veteran Daniel Petre, who say while startups should be carved out of the laws, the tech sector needs to stop running scare campaigns.
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