Tech founders are using AI-generated images of the Australian prime minister to mock the government’s planned overhaul of capital gains tax, warning the changes will push talent and startups overseas. The satirical posts, which show Anthony Albanese photoshopped into offices, coding products and even sleeping at desks, have become a rallying cry for a sector that says it is being treated as “collateral damage”.
Jacques Greeff, founder of the communications app Kinso, posted images of Albanese with his staff and captioned them: “He’s having a great time with his new 47% equity.” Greeff argued that the reduced incentive to grow a business, combined with the same risks, will make it harder to attract talented employees through equity offers. “Australia should be encouraging young founders to build the next Canva. My fear is they don’t even attempt it now or, worse, they go overseas and build the next unicorn and Australia misses out entirely,” he said.
Julian Fayad, chief executive of the loan comparison platform LoanOptions.ai, posted AI images of Albanese sleeping in his office and scrolling on his phone. “With the 47% CGT, the government’s message to founders like me is that if we succeed, they want nearly half of the hard-earned reward,” he said. Fayad took part in a roundtable meeting in Sydney on Saturday hosted by shadow treasurer Tim Wilson, where founders criticised the changes. He compared Australia unfavourably with Singapore and the UAE, saying those countries offered “incentives, the structures, the genuine support” that Canberra was failing to provide.
Alfie Robertson, founder of the video editing app Roll, posted images of Albanese in the gym, recording a podcast and working on strategy. “The concern is not just about tax,” he said. “It’s about incentives. Policies like this shape where founders choose to build, invest and stay.” He warned that if Australia does not reward productive risk-takers, startups will look elsewhere.
Tax changes and the impact on equity
The protests centre on the government’s plan to replace the existing 50% capital gains tax (CGT) discount with a system of “cost-base indexation” — taxing profits after adjusting for inflation — along with a minimum 30% tax rate. The changes are due to take effect from July 2027. Gains accrued on existing investments before that date are expected to retain the 50% discount.
The reform will hit startup founders and employees particularly hard because of how early-stage companies use equity. Many startups have little cashflow and instead offer workers stock options or equity shares in lieu of higher salaries. Founders themselves are motivated to take on the high risk of building a new business by the prospect of a large payout when they eventually sell their company. Under the new rules, that payout will be taxed at a higher effective rate, reducing the reward for taking the risk.
Kate Cornick, chief executive of the Tech Council of Australia, said there was work to do to ensure the startup community did not become “collateral damage” from the changes. “There is work to do to ensure Australia’s startup community doesn’t become collateral damage as a result of proposed changes,” she said. The Tech Council welcomed new research and development tax incentives and reforms to venture capital regulation, and said it was keen to continue consulting with the government on the treatment of early-stage businesses under the CGT reforms.
Other industry bodies have also voiced alarm. FinTech Australia cautioned that the uncertainty could immediately affect startups’ access to funding and risk pushing founders, capital and talent offshore. Bronwyn Fox, deputy vice-chancellor of research and enterprise at the University of New South Wales, said Australia needed to be cautious because weakening incentives could drive capital, jobs and industries elsewhere. Steve Baxter, founder and chief executive of Beaten Zone Venture Partners, warned of a “significant disincentive effect on private capital formation” and said attracting talent would become harder if equity was less attractive.
Janine Allis, co-founder of Boost Juice, also warned that winding back the CGT discount would discourage innovative businesses, while shadow treasurer Tim Wilson warned of “founder flight” overseas. The shadow treasurer has been campaigning against the changes, holding a roundtable in Sydney where Fayad and other founders aired their concerns.
Government and economist responses
Asked about the backlash, Prime Minister Albanese said he supported the startup sector and pointed to existing budget measures including research and development tax incentives and instant asset write-offs. The instant asset write-off scheme allows eligible businesses to claim an immediate deduction for the business portion of an asset’s cost in the year it is first used, with a current threshold of $20,000 for assets acquired and first used between July 2023 and June 2025. The R&D Tax Incentive program provides tax offsets, including a refundable offset for companies with an aggregated turnover of less than $20 million.
Treasurer Jim Chalmers conceded that startups may have “a different kind of cost base” compared with other industries. “We had already been engaging with the tech sector, in particular, with the VC and startup sector to make sure that the changes accurately reflect the contribution that we seek from that really important part of the economy,” he said.
Economist Saul Eslake said there might be a case for more generous treatment of CGT specifically for new businesses starting from scratch, because they may be paying tax on all profits due to having no cost base to index. He backed the government’s broader moves to alter CGT for property and shares, arguing it was not unfair to expect startup founders to pay tax on business earnings. However, he conceded that some new businesses, particularly startups, may need incentives to encourage innovation and risk-taking. “There are still pretty powerful incentives,” Eslake said. “If, instead of becoming a billionaire, you make $800m, is that less incentive?”
Economist Chris Richardson warned that it would be a mistake to “bend” on the CGT changes. He said incentives such as R&D tax offsets and the instant asset write-off were better than carve-outs for future profits to support early-stage businesses. Richardson backed the broader move towards taxing income from assets and income from labour in a more equal way, quoting Warren Buffett: “You may run into someone with a terrific investment idea, who won’t go forward with it because of the tax he would owe when it succeeds. Send him my way. Let me unburden him.”
The government has indicated it is continuing consultations with the sector, and the prime minister has said he wants to support innovation. The Coalition, led by the shadow treasurer, has said it would repeal the changes if necessary.
