The government is trying to cool property speculation and improve housing affordability with Legislation that could punish people who take risks building businesses from scratch. Founders often invest years of time, low salaries and personal risk to create value, and if they are taxed too heavily when they eventually sell their business, it reduces the incentive to innovate and build companies in Australia.
The tech industry is effectively saying:
* there is a difference between passive investing and building a company
* startup founders create jobs, exports and productivity
* Australia already struggles to keep top talent and capital locally
* overly aggressive CGT changes could push entrepreneurs and investors offshore
The government appears open to consulting with the startup and technology sector to potentially create carve-outs or incentives for early-stage and innovation businesses so genuine entrepreneurship is still encouraged.
In simple terms:
Australia needs to be careful not to solve a housing affordability problem by damaging innovation, risk-taking and long-term wealth creation through business building.
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