It looks like being a busy King’s birthday long weekend for many in Australia’s startup sector.
On Tuesday, June 9, submissions close for a Senate inquiry into the government’s proposed changes to capital gains tax, announced in the federal budget last month.
So rather than raging on LinkedIn with Albo memes, this is your chance to have a say about the impact the changes could have on Australia’s startup ecosystem.
Anyone can make one. Startup Daily regular Dexter Cousins from fintech executive recruitment firm Tier One People was one of the first out of the blocks – on Friday afternoon, there are seven submissions.
Cousins argues that the CGT changes will weaken Australia’s ability to recruit senior talent, especially in the context of equity being offered to lure people Down Under.
“Our data suggests the changes may accelerate the movement of both capital and professional talent to jurisdictions offering more competitive tax treatment of risk capital and personal income,” Cousins wrote.
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“Our placement data suggests this is already affecting Australia’s competitiveness as a destination for international talent.”
He also asks that “Treasury be asked to publish economic modelling on the expected impact of the proposed changes on venture capital deployment, angel investment activity, employee share scheme participation, and inbound executive talent attraction.”
Public hearings
The Economics Legislation Committee will hold public hearings into the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026, which were passed in the lower house this week, before handing down its report on June 19.
The legislation will then be up for debate in the Senate a few days later. It can pass, reject or sent it back to the lower house for amendments.
The Albanese government doesn’t have the balance of power in the Senate. There are 10 Greens, four One Nation and five independent senators, with Labor holding 30 of the 76 seats. That means passing legislation requires cross-bench support, and potentially, negotiation. The cross bench is where attention should be focused, since the government already appears bloody-minded in ramming through the changes, and despite lip service on listening to the startup sector, appears to be simply kicking the can down the road until it gets its way.
This week, Cheryl Mack from Aussie Angels talked about the potential impact of the changes on angel investing.
As the AFR pointed out today, the fine print in the legislation suggests that while you’ll be hit for the upside on any deal, some of the money you lose on other investments won’t count.
Submission advice
Whatever argument you want to make, here’s what the Parliament says about making a submission:
- clearly address some or all of the terms of reference—you do not need to address each one
- are relevant and highlight your own perspective
- are concise, generally no longer than 4-5 pages
- begin with a short introduction about yourself or the organisation you represent
- emphasise the key points so that they are clear
- outline not only what the issues are but how problems can be addressed, as the committee looks to submissions for ideas to make recommendations
- only include documents that directly relate to your key points
- only include information you would be happy to see published on the internet.
Don’t submit a form letter. Explain carefully your thinking. Try to outline unintended consequences of the changes and their impact on the startup sector and the thousands who work in the tech sector, which employs around 1 million people.
You may even end up speaking to the committee in parliament the following week – they do invite some who made submissions to appear and expand on what you had to say. The submissions are both public, and regarded as evidence to the committee.
And if you’re still not confident, Sam Maher and the team at CAIIF – the Coalition for Australia’s Innovation and Investment Future – is hosting online drop in on Monday, June 8, between 2pm and 6pm, for anyone preparing a submission to the Senate inquiry. You can register to be a part of it here
