Kate Chaney (Curtin, Independent) Share this | Link to this | Hansard source

My question is to the Treasurer. I support the capital gains tax reform for housing, but my community and I are concerned about its impact on the startup sector, which contributes significantly to productivity. The reforms announced could undermine investment in innovative, high-risk, early-stage businesses. I acknowledge your commitment to consult with stakeholders on this issue. Could you outline the consultation process and whether the government is considering a carve-out for early-stage businesses?

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Curtin for her important question. I do acknowledge that, in parts of our economy—and in this very important part of our economy, the startup and VC sector—there is more work to do and more consultation to do to make sure that we get the right set of arrangements. I want to acknowledge members on this side of the House, including the member for Chifley and other members, whom I've been engaging with. The member for Parramatta is obviously across these issues, and a bunch of other colleagues are as well.

The budget is very supportive of venture capital—VC. There are a number of tax changes in there which are about supporting, assisting, encouraging and incentivising more of this really important part of the economy. But I do acknowledge that, even before last night, this sector had raised some issues with us. We had been consulting privately with the sector already, before last night, to make sure that we can get the right arrangements in place. I say to this part of the economy, we think that you are a really important part of the economy in lots of ways—the hope of the side, when it comes to dynamism and productivity—and we will reflect and recognise that in our policy.

There are particular circumstances in this part of the economy when it comes to the calculation of the cost base for CGT, which is the concern that the member and other members are reflecting. My commitment to the sector, publicly and privately, has been to continue to work on these issues to get the best landing that we can. It's a very, very small part of our economy, so it's not a big part of the changes that we are announcing, but it's an important part of the economy, and our work will reflect that.