Coalition launches anti-CGT campaign as startup sector warns of offshore exodus
NSW shadow minister for science and technology Jacqui Munro has launched a petition opposing Labor's proposed capital gains tax overhaul, marking the most organised political pushback yet from the startup ecosystem.
The #StopTheTechTax campaign, backed by federal shadow innovation minister Aaron Violi, warns the changes could drive startups, talent and capital out of Australia. The petition comes after the Albanese government unveiled plans to replace the existing 50% CGT discount with cost-based indexation and introduce a 30% minimum tax on net capital gains.
Why sales teams should care
The policy fight matters beyond founders and VCs. Startup equity grants typically start with a near-zero cost base, so cost-base indexation may not offset the proposed 30% minimum tax at liquidity events. Higher founder tax bills could mean slower company formation, tighter hiring and more emphasis on revenue efficiency over headcount expansion.
Square Peg co-founder Paul Bassat, one of ANZ's most influential venture voices, has publicly warned the changes could discourage company formation and push HQs offshore. Square Peg sits near the top of the local funding ecosystem, making his position significant for founders evaluating where to build.
Employee share ownership advocates have also flagged concerns, suggesting the changes carry practical implications for startup compensation structures and talent retention, not just exit economics.
Market context
The debate is hitting a sector already under pressure from tighter funding conditions and a cautious exit market. That combination typically translates to smaller sales teams, delayed hiring and higher quotas as startups stretch runway.
The Coalition's campaign argues Australia risks becoming less competitive for talent and capital versus Singapore, the US or the UK. Whether that pushes material offshore movement or simply becomes election positioning remains to be seen.
For sales professionals evaluating startup offers, the takeaway is straightforward: watch how this plays out. If equity tax treatment changes materially, comp structures will adjust. The question is whether those adjustments happen here or somewhere else.