{"id":680489,"date":"2026-05-19T09:19:08","date_gmt":"2026-05-19T09:19:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/680489\/"},"modified":"2026-05-19T09:19:08","modified_gmt":"2026-05-19T09:19:08","slug":"pocock-urges-cgt-changes-as-albanese-laughs-off-ai-meme-campaign-tax","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/680489\/","title":{"rendered":"Pocock urges CGT changes as Albanese laughs off AI meme campaign | Tax"},"content":{"rendered":"

Anthony Albanese has laughed off an AI-generated meme campaign<\/a> against capital gains tax changes from startup founders, thanking them for \u201cvery flattering\u201d doctored photos of him working in their businesses.<\/p>\n

But independent politicians representing some of Australia\u2019s startup hotspots have raised alarm over the proposed increase to capital gains tax, warning the tax changes could see innovative companies and tech firms move overseas to chase higher rewards.<\/p>\n

\u201cThe government needs to do the deep consultation required to get this policy right so any changes don\u2019t drive investment offshore. We need to retain maximum sovereign innovative capability and retain economic benefit here in Australia,\u201d said ACT senator David Pocock<\/a>.<\/p>\n

Last week\u2019s federal budget proposed to change CGT<\/a> \u2013 replacing the 50% tax discount on profits with \u201ccost-base indexation\u201d, meaning tax on profits after inflation, and a minimum 30% tax rate \u2013 which would affect profits on selling properties, shares and other assets.<\/p>\n

Sign up for the Breaking News Australia email<\/a><\/p>\n

Guardian Australia first reported on the AI-generated photos of Albanese<\/a> being mockingly posted by tech startups and business owners, in protest of the proposed CGT changes. Entrepreneurs and the tech sector have warned that increased taxes could push people away from working for new businesses or send startups overseas.<\/p>\n

Early-stage companies with little cashflow often offer employees equity in the company or stock options in lieu of higher pay, while founders can be motivated to take risks with new ventures by a large potential payday when they sell their companies.<\/p>\n

The treasurer, Jim Chalmers, has said the government is still consulting on the changes, not denying there may be a carveout or special treatment for new businesses.<\/p>\n

Australian entrepreneur Alfie Robertson \u2018welcomes\u2019 Albanese to his office in an AI-generated image. Illustration: Alfie Robertson<\/p>\n

Wentworth MP Allegra Spender, Kooyong MP Monique Ryan, Mackellar MP Sophie Scamps and Canberra-based senator Pocock all backed the government\u2019s broader moves on tax, negative gearing and CGT, but warned the application of the CGT changes to the startup sector specifically could be counterproductive.<\/p>\n

\u201cThe government should be consulting widely \u2013 it is with the tech sector and needs to go further with business owners, fund managers and the broader community,\u201d Spender said, calling on the government to take time to \u201cget the balance right\u201d.<\/p>\n

\u201cTax reform is hard. It needs to balance prosperity and fairness and get that balance right.\u201d<\/p>\n

Spender held a roundtable discussion with startup founders in her eastern Sydney electorate on Monday, and plans to relay their concerns to government. She suggested revenue raised from CGT changes should be returned to Australians as income tax cuts.<\/p>\n

Ryan, whose electorate is in inner Melbourne, suggested company founders, early employees and investors should get discounted or concessional rates of CGT.<\/p>\n

\u201cI\u2019ve heard from constituents with startups, and from younger investors, that these changes could have a chilling effect on investment on new and small businesses \u2013 which is where we need to be putting our support,\u201d she said.<\/p>\n

\u201cIf we want Australians building businesses here, we can\u2019t make Australia one of the worst places in the developed world to realise a capital gain.\u201d<\/p>\n

Startup founder Julian Fayad with the PM in his AI-generated post. Illustration: Julian Fayad<\/p>\n

Pocock called the ACT \u201cthe startup capital\u201d of Australia, and has written to Chalmers urging a rethink of the proposal. In a letter, he suggested the government should even strengthen favourable treatment for founder equity, employee share programs and venture capital.<\/p>\n

\u201cIn the same way the government is using tax settings to stimulate housing supply, they should be used to stimulate investment in startups and the innovation we need as a country to solve challenges and diversify our economy,\u201d Pocock told Guardian Australia, warning about \u201cunintended consequences\u201d from the changes.<\/p>\n

Scamps was concerned that entrepreneurs in her Sydney electorate would move offshore, warning the proposed CGT changes \u201ccould undermine start-ups and small businesses\u201d.<\/p>\n

\u201cWe cannot afford to send a generation of Australian entrepreneurs overseas because our tax settings are no longer internationally competitive. If founders and investors leave, Australia loses jobs, innovation and future industries,\u201d she said.<\/p>\n

The government has downplayed the AI-generated memes mocking the changes, but the online trend has grown over the weekend, with new AI-generated photos depicting Albanese as a tradesman, hairdresser and underwear salesman. The trend was started by Julian Fayad, CEO of loan comparison platform LoanOptions.ai and a former candidate for Clive Palmer\u2019s United Australia party<\/a> in 2022, who joined shadow treasurer Tim Wilson at a startup roundtable on Sunday.<\/p>\n

Chalmers shrugged off the campaign, saying: \u201cwe\u2019re not changing the 47% marginal rate that\u2019s been referred to in those memes.\u201d He also noted \u201cgenerous\u201d concessions for small business would remain.<\/p>\n

Albanese said consultation would continue until relevant legislation was introduced into parliament in coming weeks, saying the government wanted to support startups and venture capital. Asked about the memes in a radio interview, he said the government wanted \u201cno disadvantage\u201d to that sector.<\/p>\n

\u201cI have seen some of the memes which are there and the memes are very flattering, I must say, some of them. So, thank you to those who\u2019ve made me look rather good.\u201d<\/p>\n

The Tech Council of Australia said it was confident that the government \u201cappreciates the conditions and challenges entrepreneurs face\u201d and it wanted to \u201cmake this case\u201d on the final CGT settings.<\/p>\n

\u201cThe value created by early stage companies is almost entirely new value, built from risk, talent and conviction. Australia\u2019s venture and tax settings need to reflect that,\u201d the group said.<\/p>\n

\u201cWe welcome the opportunity to continue this work and ensure the final settings support the flow of risk capital and skilled talent into early stage Australian companies.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Anthony Albanese has laughed off an AI-generated meme campaign against capital gains tax changes from startup founders, thanking…\n","protected":false},"author":2,"featured_media":676417,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,105],"class_list":["post-680489","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-au","tag-australia","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/680489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=680489"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/680489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/676417"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=680489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=680489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=680489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}