‘Falls significantly short’: Startup sector rejects government’s CGT olive branch

‘Falls significantly short’: Startup sector rejects government’s CGT olive branch

Australia’s startup sector has blasted the government’s proposed carveout in submissions, warning it is too narrow, too complex and could drive founders offshore.

Australia’s startup sector has flatly rejected the Albanese government’s olive branch on capital gains tax, describing it as woefully inadequate, an administrative nightmare and an own goal.

The Innovative Business CGT Concession (IBCC) was proposed after the government’s capital gains tax overhaul sparked fierce industry backlash.

“There is a shared acknowledgment between government and the sector that innovative businesses deserve special treatment,” said Tech Council of Australia (TCA) CEO Kate Cornick.

“The proposed IBCC falls significantly short and, if it is not designed correctly, will stifle Australia’s startup technology sector.”