Startup founders lampoon PM with AI images as capital gains tax fight heats up

A group of Australian tech founders is using AI-generated images of Prime Minister Anthony Albanese to protest proposed capital gains tax changes they say could drive startups offshore and kill the incentive to build the next Canva.

The images, posted on social media after the federal budget, show Albanese coding alongside staff, sleeping in the office, and working out at the gym—each caption suggesting he’s now a co-founder with a 47% equity stake, a jab at the new minimum tax rate on capital gains.

Under the government’s plan, the longstanding 50% CGT discount would be replaced by cost-base indexation, meaning profits are taxed after inflation, with a floor rate of 30%. The Tech Council of Australia warned the change could make it harder for early-stage startups to attract talent through equity and stock options, a common practice when cash is tight.

“With the tax changes, the incentive to grow a business is greatly reduced, but all the normal risks remain,” said Jacques Greeff, founder of the communications app Kinso. “Australia should be encouraging young founders to build the next Canva. My fear is they don’t even attempt it now or go overseas.”

Julian Fayad, CEO of LoanOptions.ai, who attended a roundtable with Shadow Treasurer Tim Wilson, said the message to founders is clear: “If we succeed, they want nearly half of the hard-earned reward.” He contrasted Australia’s approach with Singapore and the UAE, which offer stronger incentives and support.

Alfie Robertson, founder of video editing app Roll, warned the issue goes beyond tax. “Policies like this shape where founders choose to build, invest and stay,” he said. “If Australia wants to compete globally for talent and innovation, it should reward productive risk-taking, not reduce the incentive to do so.”

Prime Minister Albanese defended the budget, pointing to R&D tax incentives and instant asset write-offs. Treasurer Jim Chalmers acknowledged startups may have a different cost structure and said consultation with the sector is ongoing.

Economist Saul Eslake backed special treatment for startups, noting they often have no cost base to index, but argued that even an $800 million payout—rather than a billion—still provides powerful motivation. Chris Richardson, another economist, warned against bending on the change, citing Warren Buffett’s quip that anyone who abandons a great idea because of taxes should be sent his way.

The Tech Council welcomed new R&D incentives and venture capital reforms but said it will keep pushing for a carve-out on the CGT changes.