‘May as well buy an ETF’: How the budget looked after VC, not angels
While the budget expanded tax incentives for venture capital funds, the concession built for Australia’s angel investors was left untouched for a tenth year. Now angels are pressing for a fix.
Australia’s angel investors say the May federal budget looked after venture capital funds while leaving the country’s earliest-stage backers exposed. They are pressing the government to update a startup tax concession that hasn’t been touched since 2017.
The 2026 budget lifted investment thresholds on the Early Stage Venture Capital Limited Partnership (ESVCLP) and VCLP structures used by venture funds but made no change to the Early Stage Innovation Company (ESIC) incentive, which is designed for earlier, riskier investments.
Cheryl Mack, CEO of Aussie Angels, said the omission compounds the budget’s wind-back of the 50% capital gains tax discount, leaving angels worse off on two fronts.
“I’m probably not getting the 50% CGT tax discount, and the companies I’m investing in aren’t ESIC anymore, so what the hell am I doing here?” she said. “I may as well just put my money into an ETF.”
