If the deluge of leaks to the media over the past 48 hours is anything to go by, startups and innovation will play an outsized role in next week’s federal budget. Not necessarily in a good way.
Of the leaks so far, Treasurer Jim Chalmers’ proposed changes to capital gains tax are consuming most of the oxygen.
The mooted plan would see Australia return to a pre-1999 inflation indexation model for taxing capital gains across all asset classes, aside from the family home, including investment properties and shares. It would replace the 50% discount introduced by John Howard.
The change is being pitched as a housing affordability measure, designed to wind back a concession blamed for tilting the housing market towards investors and against first home buyers. Labor also has a worsening budget deficit to consider.
