CGT reform threatens talent retention, not just exits
Kim Teo, CEO of Melbourne fintech unicorn Airwallex, says the federal government's capital gains tax changes will drive founders offshore, rendering startup support measures useless.
The 2026-27 Budget scrapped the 50% CGT discount on asset gains held over 12 months. Starting July 2027, gains will be taxed on inflation-adjusted value with a 30% minimum rate. Treasurer Jim Chalmers framed it as intergenerational fairness targeting property investors.
The reform does not exempt shares. That hits startup equity comp hard.
Airwallex employs 1,500 globally, including 100+ in ANZ sales roles across Melbourne and Sydney. The company raised $800M+ to reach a $5.5B valuation, processing $50B+ in annual payment volume. Like most tech employers, Airwallex uses equity to compete for talent, especially in enterprise sales and partnerships where base salaries lag US markets.
Why this matters for sales teams
Startup comp packages typically split between base, variable, and equity. The equity portion just got less attractive. If CGT doubles on your options, that $180k OTE needs recalculating.
Teo's concern: founders leave before the reform hits. If they relocate pre-exit, Australia loses not just the founder but the sales org, product teams, and hiring pipeline that follows.
The startup community saw this coming. Rumours spooked investors and founders before the budget dropped. Early-stage companies rely on equity to hire when cash is tight. Enterprise AEs taking $120k base plus options just watched their upside shrink 20-30% depending on marginal rates.
Market context
Airwallex competes with Wise, PayPal, and local players like Tyro in cross-border payments. The company has expanded through partnerships, including NAB for SMB payments, not acquisitions. No recent sales leadership changes, though LinkedIn shows active hiring in enterprise and mid-market roles.
The CGT change applies broadly: property, shares, business assets. But for ANZ tech sales professionals weighing startup offers against corporate roles, the equity comp gap just widened against established players with higher base salaries.
Worth noting: small business CGT concessions remain untouched. This targets individuals and investors, not business structures. If you are vesting options, your tax bill just went up.