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Taxes & Grants Australia Jun 18, 2026

Australia proposes 50% CGT startup concession, new equity from 1 July 2027

Australia proposes 50% CGT startup concession, new equity from 1 July 2027

On 18 June 2026 the Albanese government released a consultation paper for an 'innovative business CGT concession' that preserves a 50% capital gains discount for founders, employees and investors in eligible startups, for gains accrued from 1 July 2027. To qualify, shares must be new equity in a company under 10 years old (up to 15 for sectors like biotech/medtech), with under $50 million turnover, meeting principles-based innovation criteria, and held at least five years, with a lifetime cap and indicative cost of $125 million over the forward estimates.

Why this matters for founders

Founders and employees with sweat equity or ESS shares should structure equity as new share issues in the company's early, low-turnover years and hold 5+ years to preserve the 50% CGT discount; engage with the consultation if terms affect your cap table.

Source: Prime Minister of Australia (media release)

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