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