The secret is out.
Last week, Treasurer Jim Chalmers delivered a budget that eliminated capital gains tax discounts on asset sales without carving out the startup and venture capital sectors.
The decision angered founders and investors, who argued they needed early-stage government support to thrive. They warned it could drive founders offshore to jurisdictions that better understood their needs.
As the resulting furore damaged the government’s post-budget sales job, we had assumed the failure to carve out these emerging sectors was an oversight.
But no, says Prime Minister Anthony Albanese. It was planned all along.
The man who has spent more than a week fighting off criticism and embarrassing social media memes from the startup sector now says it is normal for governments to announce tax changes in budgets and consult affected groups retrospectively.
