AusBiotech is seeking member feedback to inform its response to Treasury’s consultation paper, Capital gains tax reforms – arrangements for innovative start-ups.
We request your feedback by Sunday, 28 June 2026.
The consultation paper responds to industry advocacy regarding the Federal Budget’s proposal to replace the 50% capital gains tax (CGT) discount from 1 July 2027 with capital gains tax cost-base indexation and a minimum 30% tax on net capital (real) gains.
The consultation paper proposes a new ‘Innovative Business CGT Concession’ to support early investment in innovative start-ups, including founders, employee shareholders, early-stage investors and eligible venture capital participants. Since the Budget was announced, we have heard from members that the Government’s proposed reforms will have a significant impact of life sciences founders, employees and investors.
The consultation acknowledges the unique aspects of the biotech and medtech sector and seeks to address those through an extension of company age to 15 years, and possibly allowing both non-list and listed companies to be eligible. However, neither of these conditions are guaranteed and we need your input to ensure any concession is fit for purpose for our sector. The proposed arrangements may be particularly relevant to biotechnology, medtech and deep tech companies, where long development timelines, regulatory requirements, clinical evidence generation and commercialisation pathways can affect investment, valuation, company growth and exit timing.
This survey seeks your views on the consultation questions raised by Treasury, including whether the proposed concession is fit-for-purpose, whether the 10-year age limit and $50 million turnover threshold are appropriate, how a longer 15-year eligibility period should apply to sectors such as biotech and medtech, and whether the proposed innovation principles, five-year holding period, lifetime cap and transitional arrangements are workable.
Your feedback will help AusBiotech identify the practical implications for members and ensure its submission reflects the needs and experience of Australia’s life sciences sector. Responses may be used to inform AusBiotech’s submission and advocacy, and individual comments will not be attributed without permission.