The budget’s big ambition needs much better incentives
We should applaud the budget for trying to shake us out of complacency on housing. But higher taxes on productive assets risk killing Australia’s alternative future.
Charlie is a co-founder at Eucalyptus and a core contributor to Build Australia.
We Australians see ourselves as risk-takers and world-beaters. Olympic champions. A remote island that punches above its weight in sport, Hollywood, science and engineering. We share in the glory of our winners and take pride in their sacrifice and ambition.
In that spirit, Australians should applaud this week’s budget for its bold ambition: to drive us away from housing, shake us out of complacency and give the next generation a fairer go.
But as big as the vision is, good intentions can’t hide design flaws. The incentives need tuning.
Forget startups. Forget venture capital. The plan to dramatically increase capital gains tax on productive assets — businesses and shares — undermines the very foundations of the Australian spirit.
