Australia’s capital gains tax debate has become a shouting match. In parliament, Liberal MPs are being suspended for calling colleagues liars. On LinkedIn, founders are losing the room.
But away from the noise, the consequences of the proposed changes are already starting to be felt, just with less fanfare.
Elicia McDonald, CEO of Airtree, says the fund is watching candidates withdraw from live job offers. People who had committed to moving back to Australia from the United States are pulling out, she says, because the risk-reward calculation on equity no longer makes sense.
“When individual decisions start to form a trend and the best tech talent reconsiders their options, it’s harder for early-stage startups to hire,” McDonald said. “Over time, that will mean fewer jobs created and a slower innovation engine at exactly the moment Australia should be accelerating.”
