The policy has triggered a response from parts of the business community<\/a>, including a wave of online satire directed at\u00a0Prime Minister Anthony Albanese using AI-generated images.\u00a0<\/p>\n Among those raising\u00a0concerns\u00a0is\u00a0former Deputy Chief Medical Officer and current media commentator\u00a0Dr Nick Coatsworth, who warned the reforms could have long-term economic impacts beyond tax settings.\u00a0<\/p>\n \u201cWe’re becoming a weaker nation, of that I have absolutely no doubt,\u201d\u00a0Mr\u00a0Coatsworth said\u00a0in\u00a0a social media\u00a0post\u00a0<\/a>on Wednesday.\u00a0<\/p>\n He argued the changes could discourage risk-taking at a time when global competitors are moving in the opposite direction.\u00a0<\/p>\n \u201cThis is a risky world, and all of our competitors in the region and around the globe are taking more risks, and here we are with a budget that encourages us as a nation to take less risks,” he said.<\/p>\n He argued the policy could reduce Australia\u2019s attractiveness as a destination for entrepreneurs and investors, particularly in high-growth sectors such as technology and start-ups.\u00a0<\/p>\n \u201cIt makes us less of a destination for business, makes us a less strong economy, that’s\u00a0the problem with it,\u201d he said.\u00a0<\/p>\n \u201cThat is going to affect us all, that’s going to affect us badly.\u201d\u00a0<\/p>\n Speaking to Sky News, business entrepreneur\u00a0Julian Fayad, who runs Loan Options AI, agreed that many business leaders\u00a0could consider\u00a0relocating\u00a0operations overseas if the policy settings reduced Australia\u2019s competitiveness.\u00a0\u00a0<\/p>\n \u201cThat\u2019s a very real possibility now,\u201d he said.\u00a0\u00a0\u00a0<\/p>\n \u201cWe’re going to lose some of Australia’s best talent.\u201d\u00a0<\/p>\n This\u00a0comes after young investors and entrepreneurs shattered Labor’s spin that its tax changes are good for younger Australians.\u00a0<\/p>\n The government said its budget would address intergenerational inequity, but the changes to CGT and negative gearing were grandfathered.\u00a0<\/p>\n This preserves the\u00a0favourable\u00a0conditions for older Australians and those\u00a0benefiting\u00a0from the old scheme.\u00a0<\/p>\n Younger Australians are also more likely to invest in shares to build wealth and save for a deposit on a home.\u00a0<\/p>\n In April 2025,\u00a0Mr\u00a0Albanese ruled out changes to negative gearing or CGT, saying: \u201cYeah, it\u2019s off the table\u201d.\u00a0<\/p>\n He reinforced that position in May 2025, telling Sky News: \u201cThe\u00a0proof’s\u00a0in the pudding. If we were going to make changes, then why haven’t we?\u201d\u00a0<\/p>\n However, in the first federal budget since, the government has completely reversed its position without taking the changes to voters at an election.\u00a0<\/p>\n![\"\u2018Political](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/bb4cb625dde536d519048f742aac24d5.jpeg\")
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