Kim Teo says ending the 50% CGT discount will push startup founders out of Australia, making government support measures pointless. The 2026-27 Budget replaces the discount with inflation-adjusted gains taxed at minimum 30%, hitting employee equity and founder exits. Airwallex, valued at $5.5B with 100+ ANZ sales roles, built its team on equity comp structures now under threat.
Former Up Bank CPO Anson Parker and payments exec Sam Mendelsohn closed a $4 million pre-seed for XMO, an AI-native consumer finance startup. The Melbourne team is building product, applying for licences and hiring before a 12-month Australian launch. No sales org yet: this is founder-led pilot territory.
Budget 2026 tweaks R&D tax offsets while Ireland boosts credits to 35% and the US restores immediate expensing. Australian deep tech founders argue the changes miss early-stage hardware startups burning capital before revenue. Trust taxation changes add pressure.
Federal government increases venture capital tax incentive caps starting July 2027. ESVCLP fund size lifts from $200M to $270M, investee business assets from $50M to $80M. Startups stay eligible longer, meaning more funded growth, which means more sales hiring. Worth noting: caps haven't moved in 20 years.
Federal Budget 2026 overhauled R&D Tax Incentive from July 2028: refundable offsets now available to $50M turnover firms (up from $20M), $200M expenditure cap (up from $150M), and 4.5% rate increase for core R&D. Changes mean faster cash for early-stage tech startups hiring engineering and sales teams, though the $200M cap fell short of industry push to remove it entirely.
The federal government is signaling possible exemptions for startups in its capital gains tax overhaul after loud protests from founders and investors. The changes replace the 50% CGT discount with inflation-based indexation, but buried exemption language suggests startup equity may get different treatment.
Federal Budget 2026 brings back COVID-era tax relief for companies under $1B turnover. Startups and SMEs can carry back current losses to offset profits from the previous two years, getting cash refunds. Worth $2.3B over five years. Similar scheme was repealed in 2022 after 12 months.
Brisbane construction tech startup closed Series B at $110M valuation. QIC Ventures led, customer Bouygues joined cap table. Company plans 100 hires over 24 months: product, engineering, and go-to-market roles across Brisbane, London, Dubai, and new US office.
Brisbane construction procurement startup closes US$11M led by QIC Ventures. French construction giant Bouygues shifts from customer to investor. Company plans 100 hires over 24 months across product, engineering, and go-to-market, plus first US office.
Microsoft's pouring $25 billion into Australian data centres and AI compute. The infrastructure is coming, but there is no clear pathway for local startups to actually use it. If access costs stay high or slots go to enterprise customers first, ANZ founders building AI sales tools will be priced out or forced offshore.
Melbourne construction software company BuildPass is posting 50% month-on-month US growth after opening its Austin office in late 2024. The company now has 1,000 customers and 400,000 users across four countries, backed by venture debt from Mighty Partners to fund US hiring and go-to-market.
Sydney accelerator Fishburners entered administration Wednesday owing rental debt to Investment NSW. The collapse reignited debate over NSW startup support after the government ended subsidised Sydney Startup Hub leases in 2023, forcing tenants to relocate.