Tech founders mock Albanese with AI images over capital gains tax changes

Tech entrepreneurs are using AI-generated images of Prime Minister Anthony Albanese to mock the federal government’s planned changes to capital gains tax, warning the reforms could drive startups overseas and deter workers from joining new businesses.

The images, posted online after the federal budget, depict Albanese as a co-founder in their offices, with captions such as “He’s having a great time with his new 47% equity,” from Jacques Greeff, founder of communications app Kinso.

Startups and entrepreneurs may yet receive an exemption from the changes, with Albanese saying he wanted to support innovation and Treasurer Jim Chalmers revealing ongoing consultation with the sector.

The capital gains tax changes would replace the current 50% discount on profits with cost-base indexation, taxing profits after inflation, and introduce a minimum 30% tax rate.

Early-stage startups often offer employees equity or stock options in lieu of higher pay, while founders are motivated by potential large payouts when selling their companies, both of which could be affected, the Tech Council of Australia warned.

“There is work to do to ensure Australia’s startup community doesn’t become collateral damage as a result of proposed changes,” said Kate Cornick, the council’s chief executive.

Shadow Treasurer Tim Wilson warned of “founder flight” overseas, while Boost Juice co-founder Janine Allis said winding back the capital gains tax discount would discourage innovative businesses.

A minor trend emerged after budget night, with several founders posting AI-generated images of Albanese in their offices.

Greeff posted images of the prime minister in the office with staff, coding their product, and working with customers.

“With the tax changes, [the] incentive to grow a business is greatly reduced, but all the normal risks remain,” Greeff told Guardian Australia, warning it would be harder to attract talented employees if their equity stake was less lucrative.

“Australia should be encouraging young founders to build the next Canva. My fear is they don’t even attempt it now or, worse, they go overseas and build the next unicorn and Australia misses out entirely.”

Julian Fayad, chief executive of LoanOptions.ai, posted AI images of Albanese sleeping in his company’s office and scrolling on his phone.

Fayad took part in a roundtable meeting in Sydney on Saturday hosted by Wilson, where founders were critical of the changes, and joined the shadow treasurer at a media conference afterward.

“With the 47% CGT, the government’s message to founders like me is that if we succeed, they want nearly half of the hard-earned reward,” Fayad said.

“When I look at what countries like Singapore and the UAE are doing to attract and retain founders; the incentives, the structures, the genuine support, and then look at what Canberra is doing, it’s hard not to feel abandoned and hindered.”

Alfie Robertson, founder of video editing app Roll, posted AI images of Albanese in the gym, recording a podcast, and working on strategy.

“The concern is not just about tax,” he said. “It’s about incentives. Policies like this shape where founders choose to build, invest and stay.

“If Australia wants to compete globally for talent and innovation, it should be rewarding people who take productive risks to build companies, create jobs and grow the economy, not reducing the incentive to do so.”

Asked about the backlash on Friday, Albanese said he supported the startup sector, pointing to budget incentives for research and development and instant asset write-offs.

Chalmers conceded that startups may have “a different kind of cost base” to other industries, noting ongoing engagement with the tech and venture capital sectors.

Cornick said the Tech Council welcomed new R&D tax incentives and reforms to venture capital regulation, and was keen to continue consulting on the capital gains tax changes.

Economist Saul Eslake said there may be a case for more generous treatment for capital gains tax specifically for new businesses starting from scratch, as they may be paying tax on all profits due to having no cost base to index.

He backed the government’s moves to alter capital gains tax for property and shares, but conceded some new businesses like startups may need incentives to encourage innovation and risk-taking.

Another economist, Chris Richardson, warned against making exceptions, noting that incentives such as R&D tax offsets and instant asset write-offs were better than carve-outs for future profits.