Ed Husic moves to quell ‘uncertainty’ over CGT changes’ hit to startups
The VC and startup sectors view the former industry minister, knifed in a factional standoff, as a lost ally on innovation. But Ed Husic tells Capital Brief the government is committed to getting the settings right.
Former industry minister Ed Husic has attempted to quell a fierce backlash from VC and startups after the 2026 budget, accepting Labor needs to “focus on the uncertainty” over how its tax overhaul will impact the sector.
Treasurer Jim Chalmers will consult with the sector on how his removal of the 50% capital gains tax discount and return to indexation could impact early-stage businesses, which he accepted are an “especially dynamic part of the economy [with] a different kind of cost base”.
The CGT changes have prompted a strong pushback from founders, who argue they will make Australia the worst place in the developed world for startup equity, drive talent offshore, and undermine the Employee Share Option Plans (ESOP) mechanism that distributes wealth to employees.
In a post-budget interview with Capital Brief, Husic accepted startups often use ESOP to attract the best talent, and need support to drive competition in over-concentrated markets.
