A prominent teal MP is advocating for the exemption of technology companies from impending changes to the capital gains tax, following meetings with industry leaders. This move comes despite the MP’s recent participation in a press conference criticizing the political influence wielded by large tech firms.
The Labor Party’s reforms, set to take effect with the 2026 Federal Budget, propose eliminating the current 50% capital gains tax discount. In its place, an inflation-adjusted model will be introduced, designed to tax only the ‘real’ financial gains.
However, the Tech Council of Australia has raised concerns, cautioning that these changes could significantly diminish the financial returns for founders, early-stage employees, and investors involved in high-risk start-up ventures.
The Tech Council, which advocates for many of the country’s leading tech firms such as Atlassian, Amazon, Apple, Canva, Google, Microsoft, Airwallex, Stripe, eBay, and OpenAI, is led by Atlassian co-founder Scott Farquhar.
“It will literally set back the start-up community in Australia a decade or more,” remarked a co-founder of Square Peg. “Future innovators might choose to establish the next Canva or Afterpay in the Bay Area or Singapore rather than Australia.”
This mounting opposition from the tech industry seems to have prompted a reconsideration by community independent Teal MP Allegra Spender, who shares a close connection with the billionaire Farquhar.
Her own policy white paper, released in March, proposed cutting the capital gains tax discount from 50 per cent to 30 per cent, with no carve‑outs for specific industries.
But after meeting with Farquhar last week, Spender said the CGT discount should be reduced to 35-40 per cent.
Allegra Spender (right) and Scott Farquar (left) a day before Atlassian laid off 150 workers
Farquhar (right) has donated $3.5million to Climate 200, which paid $700,000 to Spender (left)
‘The indexation model of CGT taxation is not suitable for all low‑capital businesses and doesn’t reflect the risk Australians take when they start and grow businesses. We need to support and encourage that entrepreneurialism,’ a spokesperson said in a statement.
‘She also has concerns that proposed CGT changes create distortions in investments and don’t reflect the risks people take when making investments.
‘Spender believes that we should reduce marginal tax rates, including at the top end, and pay for that by reducing tax discounts on assets, including lowering the CGT discount from the current rate of 50 per cent to a lower level, such as 35 per cent to 40 per cent.’
Spender and Farquhar, who is estimated to have a net worth of $21 billion, have known each other for more than a decade.
She also sponsored a parliamentary access pass for Farquhar, which she has disclosed.
Farquhar is also a major donor to Climate 200, the campaign group that helped fund several teal MPs, and he has given more than $3.5 million in total to it, according to donation data.
In turn, Climate 200 directed more than $700,000 towards Spender’s campaigns.
Despite her close links to the tech sector, Spender recently appeared alongside fellow independent Zali Steggall, who criticised the influence of major industries on government as the pair promoted a potential alliance of teal MPs.
Atlassian co-founder and billionaire Scott Farquhar (pictured) is chair of the Tech Council
‘Too often, it is big tech, big mining, big industry that has the ear of government. And the big lobby groups, and not enough community industries,’ Ms Steggall said on Monday.
Former prime minister Paul Keating on Wednesday singled out Canva, arguing those who profited from the tech giant should not be exempt from the proposed CGT changes.
‘Wealthy people are out there now arguing against the government’s change,’ he said.
‘They want to split off start‑up capital and shares as if the individuals commentating have not made a feast of it already.
‘They nominate tech and start‑ups. But if a tech start‑up fires, like a Canva, the value acceleration and level of wealth makes any discussion of the tax rate absolutely secondary.’
Daily Mail Political Editor Peter van Onselen said this is exactly the kind of hypocrisy voters are sick of.
‘The teals rail against big tech and big industry having too much influence over Labor, then the moment big tech comes knocking for support to amend the government’s capital gains tax changes, suddenly the teals advocating for giving them special treatment.
‘You can’t spend Monday complaining that big tech has the ear of the government and then spend the rest of the week arguing for the same sector to get special carve-outs from tax reforms without developing a credibility problem.
‘The politics of this are pretty obvious: denounce vested interests in public, accommodate them in private. That is not new politics, it’s just hypocritical.
‘If a Coalition or Labor MP had close links to a billionaire donor, sponsored their parliamentary pass, then shifted position after a meeting with them, the teals would be first in line to condemn them.’
