‘Productivity-seeking missile’: VC manager warns budget will critically damage investment
Australia needs to develop new, high-tech industries. But critics warn the 2026 budget will inhibit growth by punishing risk-takers.
A venture capitalist managing three major Australian investment funds has warned that proposed capital gains tax (CGT) discounts will damage investment in sectors critical to Australia’s economic future, such as biotechnology, AI and advanced manufacturing.
Martin Rogers, the chief investment officer of Defender Ventures, described the tax change package proposed in last month’s budget as “a productivity-seeking missile” that would also inhibit investment in artificial intelligence, medical devices, regulated digital-asset and cryptocurrency platforms and ASX-listed mineral exploration.
Rogers’ comments came in a personal submission to a Senate inquiry into the changes, which will abolish CGT discounts across all asset classes in favour of an indexation model, and confine future negative gearing to new properties.
The House of Representatives has already passed the legislation, although Treasurer Jim Chalmers — who argues the changes will make it easier for young Australians to buy homes — is consulting with business over possible amendments, recognising the proposed changes could adversely affect startups and venture capital.
