Government eases startup tax rules after industry pushback
Government eased startup tax rules, removing the gains cap and cutting the holding period to only three years.
Treasurer Jim Chalmers released a draft law on Friday for the Innovative Business CGT Concession. The Innovative Business CGT Concession protects startup founders, early employees and investors.
The startup sector had opposed the initial strict terms. Under the new version, shares only need to be held for three years instead of five.
Then they can be sold. The $10 million lifetime cap on gains has been removed.
Company eligibility has been extended from 10 years to 15 years. Treasury is seeking feedback on the draft until September 28.
- Three years
- Holding period
- Removed
- Gains cap
- 15 years
- Company eligibility window
- September 28
- Feedback deadline
Why it mattersStartups and investors can now hold more gains and sell sooner. This makes Australian startups more competitive against overseas options in the new tax system.
AustraliaAustralian founders and early-stage investors face a softer landing under the July 2027 CGT changes, making it more attractive to build and fund startups locally rather than relocate.
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