Perth, May 19: Australian founders are warning that proposed changes to Capital Gains Tax could discourage entrepreneurs from building businesses locally, after a viral meme mocking the measure spread rapidly across social media.
The backlash followed public discussion of a proposed 47 per cent Capital Gains Tax framework, with LoanOptions.ai Founder and CEO Julian Fayad posting a tongue-in-cheek meme describing the Prime Minister as his new co-founder with a 47 per cent equity share.
The meme quickly spread online, with other business owners sharing similar frustrations and Shadow Treasurer Tim Wilson later responding in a social media video.
“Like many other business owners, I put blood, sweat, and tears into my life’s work. I refinanced my home, sold investments, and worked seven-day weeks for five and a half years to build something from nothing. With the 47% CGT, the government’s message to business owners like me is that if we succeed, they want nearly half of the hard-earned reward. It’s almost like a penalty for anyone who dares to back themselves.”
“Today, I employ over 30 staff and together, we’ve saved Australians millions of dollars by helping them compare loans. If you take the incentive away from business owners to build this technology, you are ultimately taking away from all Australians.”
“I love this country. I built my business here because I believe in what Australia can be. But when I look at what countries like Singapore and the UAE are doing to attract and retain founders; the incentives, the structures, the genuine support, and then look at what Canberra is doing, it’s hard not to feel abandoned and hindered. We are actively making ourselves uncompetitive at the worst possible time.”
“This is not the right thing to do. The people the government is targeting with this tax are not the mega-wealthy. They are the founders who took the risk, missed the salary, and bet on themselves. These are the people building the AI platforms, the fintech tools, the businesses that will employ the next generation of Australians. If you tax them out of ambition, they will simply choose somewhere else to build.”
In responses provided to DailyStraits.com, the Australian Taxation Office said questions about tax policy were matters for Government and Treasury, but stressed that “ceasing to be an Australian resident does not avoid CGT obligations on existing assets.”
The ATO also said it uses “data-matching, third-party reporting and international information exchange” to monitor compliance, while noting Australia has anti-avoidance measures including controlled foreign company, transfer pricing and thin capitalisation rules to address offshore structuring arrangements.
Media & PR: editor@dailystraits.com. Copyright 2021–Present DailyStraits.com. All rights reserved.