This time a year ago, a government announcement about the startup sector wouldn’t have drawn much of a crowd.
Not today. The Commonwealth Parliament Offices in Sydney were standing room only as Prime Minister Anthony Albanese and Treasurer Jim Chalmers backed down on contentious capital gains tax changes that have infuriated the startup sector, rattled large sections of the business community and sucked the oxygen out of their housing tax reforms.
Chalmers even said the word “ESOP”, which just goes to show it is possible to teach an old politician new tricks.
To get things rolling, Treasury released a consultation paper outlining the design of a new Innovative Business CGT Concession (IBCC), a targeted 50% capital gains tax discount for early investors in qualifying innovative startups, including founders, employees with share schemes and venture capital general partners.
