Prominent voices in the Australian business community are calling on the Albanese government to reconsider its upcoming changes to the capital gains tax, especially where shares and startups are concerned.
In last week’s federal budget, Treasurer Jim Chalmers unveiled changes to the Howard-era capital gains tax discount of 50 per cent for a model linked to inflation, with a 30 per cent floor.
The policy is spruiked by the government primarily as a way to make a dent in housing affordability and improve intergenerational inequality, but now investors and business founders say the policy’s reach across all asset classes could discourage innovation by making investors and founders more risk-averse.
At a time where women founders already face structural disadvantages in Australia’s investment ecosystem, it’s worth asking whether the government has given enough consideration to the gendered impacts of these proposed changes, particularly if investors become more conservative about where they place capital.
As it stands, women-only founding teams receive just two per cent of total startup capital.
Since the budget was delivered, Chalmers has indicated he is open to carve-outs from capital gains tax discount changes for startups, and has been consulting with the business community.
Tech founders and venture capital investors have been among the most vocal opponents. The concern is particularly acute in the technology sector, where founders and early employees often accept lower salaries in exchange for equity stakes that may only deliver returns years later.
While broadly arguing that reform to tax is needed to address intergenerational inequality, independent MP Allegra Spender says she is concerned about the structure of the CGT changes based on feedback she’s been getting from young investors and the startup community.
It’s imperative the changes don’t penalise people starting and growing businesses, she said.
“I’ve been meeting since the budget with innovators, startups and scaleups and consulting on how best to address their concerns,” Spender told Women’s Agenda.
“I’m pleased that the government is also consulting and the reports I’m hearing from innovators are that this is genuine consultation so I’m optimistic.”
Spender said tax reform is “difficult” but “essential” and we needed to get the balance right.
“Our current tax system is unfair and unsustainable. It relies too heavily on taxing the income of young workers and they are a shrinking proportion of our population so we know that can’t continue,” she said.
“I’m pleased that tax is on the table for both major parties – but tax reform is hard and getting the details and the balance right is a priority.”
Fellow independent MP Nicolette Boele has called for the government to limit its proposed capital gains tax changes to residential property investment, and to shelve the broader reforms until proper consultation has been done.
“The government sold this as a housing policy, so let’s make it about housing,” Boele said.
“There’s genuine community support for removing the unfair advantage property investors have had over first home buyers for decades. I hear that clearly from my electorate. But the case for extending these changes across all asset classes? That hasn’t been made — and frankly, I don’t think the Government has done the work yet.
“I am particularly concerned about the impact on young Australians — the very people these reforms are meant to help.”
Men are the major benefactors of capital gains tax concessions
As highlighted in 2025-26 Tax Expenditures and Insights Statement (TEIS), men benefited disproportionately from the generosity of the current 50 per cent capital gains tax discount, receiving about 58 per cent of the overall benefit. Research from The Australia Institute has found that 82 per cent of the benefit flows to high-income households.
But the debate also intersects with broader questions about women’s economic participation. Entrepreneurship has increasingly become a pathway for women seeking flexibility, autonomy and leadership opportunities outside workplaces where gender bias and stalled promotion pathways remain a very real reality.
For small business advocate Liz Nable, who works with many women founders and small business owners, the concern is around whether the capital gains tax changes will prevent women from taking risks to start their own venture.
“Australia has a long way to go in encouraging women to back themselves, take risks, and build businesses,” she said.
“The reward needs to be worth the risk. Right now, this government is making sure it isn’t.”
Nable says the specific impacts on women should be considered, especially for those who plan to sell their business to fund their retirement.
“So many women build businesses later in life, after raising kids, after supporting a partner’s career, after years of putting everyone else first,” she says.
“That business is often their retirement plan. Their superannuation. Their financial independence. Removing the capital gains tax discount doesn’t just hurt entrepreneurs, it disproportionately hurts women who’ve sacrificed years to build something of their own.”
On budget night, Grattan Institute CEO Aruna Sathanapally said there was more the government was doing to incentivise investment in young, high-growth businesses.
“At the core of this budget is also a productivity package. I know that the deregulatory agenda might not seem as exciting as some of the tax changes, but I think they’ve really gotten into the drawer of all the things that have been long listed as the things that will enable Australian businesses to flourish,” she said.
“There’s also a piece around setting up your tax incentives, or your other incentives to get investment in young, high-growth businesses. Your capital gains tax mechanism — when people cash out— that’s not your best way to do it. There are other ways to do that, and we’re starting to see that in this budget.”
On budget night, the Minister for Women and Finance Katy Gallagher told Women’s Agenda that the capital gains tax discount had overcompensated for investments in detached housing and undercompensated for shares.
“So moving to a system that looks at taxing real gains as opposed to, you know, the previous arrangement of 50 per cent, levels the playing field against different types of investment,” she said.
Gallagher said the government was working to support women’s innovation through other measures like ensuring funding coming through The National Health and Medical Research Council (NHMRC) is given to women scientists and researchers on an equal basis.
Feature image: Allegra Spender (left) and Liz Nable (right).