Overview
- The government’s budget replaces the 50% capital gains tax discount with an inflation‑indexed system and a 30% minimum tax that applies to property, shares and crypto, with CGT changes due to start from July 1, 2027.
- A viral social media campaign led by start‑up founders has portrayed the prime minister as a '47%' co‑owner to dramatise worst‑case tax outcomes, pressuring ministers to clarify rules and engage the sector.
- Treasury analysis released by the government shows the average tax rate on capital gains would rise from 19.3% to 21.5%, a figure ministers use to contest claims that most sellers will face the top marginal rate.
- Labor says it will consult with start‑ups, peak bodies and states and has signalled possible targeted carve‑outs or transitional support while preparing draft legislation for introduction in early June.
- The debate has split opinion with former PM Paul Keating defending the reform as a return to a 'real gains' approach and the Coalition and many founders warning it could raise costs for younger, high‑growth investors.