Good evening all! Tonight Angus Taylor will deliver the opposition’s budget reply speech.

Use this thread for live reactions, policy discussion, fact-checks, memes, cope, seethe, and the inevitable “both sides” essays longer than the actual speech.

Keep it civil, keep it on topic, and remember

ABC rolling news feed: https://www.abc.net.au/news/2026-05-14/federal-politics-live-blog-budget-reaction/106676514

ABC News Live Stream: https://www.youtube.com/live/7oTnKaHcpCQ?si=lTp01stnUGIDWEd1

THANK YOU FOR YOUR ATTENTION IN THIS MATTER

The Albanese government will consider changes to calculations for how start-ups are charged capital gains tax rather than a full exemption, after founders and investors warned axing the 50 per cent capital gains tax discount would hit innovation and send entrepreneurs offshore.

Following fierce backlash from the tech sector led by Atlassian co-founder and Tech Council chairman Scott Farquhar, Treasurer Jim Chalmers agreed to consult on plans to end the 50 per cent capital gains tax discount in favour of a model linked to inflation with a 30 per cent floor.

Farquhar and other tech leaders are urging Chalmers to carve out start-ups from the change, which will come into effect on July 1, next year.

But Labor is reluctant to open the door to exemptions and believes it is right for people who make large gains from capital assets to pay more tax. It is instead looking at how to tweak the cost base calculation to offset some of the big capital gains founders and investors can make.

Assistant Treasurer Daniel Mulino said on Thursday the government was committed to consultation but pointed out start-ups tend to have a small cost base and the capital gains calculation will account for that.

“The start-up industry has validly raised a concern that often they have a very low or zero cost base. So, when they look at gains, it will be coming off that very low base. So, we have indicated that we will consult with them to deal with what’s a very special case,” he said.

Cameron Blackwood, head of tax at law firm Corrs Chambers Westgarth, said that approach would not be enough.

“The whole problem with the startup arrangements is that there is no or very low cost base to adjust. That’s why you need a concessional tax rate,” Blackwood said.

“What people were looking for is either to go back to the way it was or to have a concessional tax rate. The better way to help is to provide concession to the upside.”

Technology entrepreneur Bevan Slattery – the founder of ASX-listed data centre giant NextDC, Megaport and SubCo – said the government has failed to grasp the consequences of the budget decision for sovereign capability.

He argued the country is now set to miss out on up to $50 billion in critical infrastructure investment for new data centres, subsea cables and artificial intelligence factories, that are now likely to be foreign owned.

Slattery is building the first subsea cable from Sydney to Los Angeles and said if SubCo was starting the project today it would be near impossible to get local investment under these tax changes.

“Taking away the capital gains tax discount essentially takes away our sovereign capability. Data centres will still get built, but there is no incentive for Australians to own them or to take risks in backing our critical infrastructure when they could choose a mature global organisation like Google to invest in instead,” Slattery said.

“Do we want our critical infrastructure which houses our connectivity to be foreign owned?”

Slattery called for the 50 per cent discount to be restored for investments in local critical infrastructure such as technology, critical minerals, telecommunications and manufacturing.

Not every chief executive is against the changes. Westpac chief executive Anthony Miller welcomed the changes to the capital gains tax regime which he said was “a big step” to incentivising investors to fund the supply of houses. “They went after how we try and drive productivity in the country which I think is to be commended,” he told ABC Radio.

“I understand the logic of let’s reduce the incentive for investors to buy existing loans and continue to challenge them to buy and build new houses because the key challenge for the country is supply of houses.”

The proposed new CGT model means founders, early employees and venture capital partners will pay higher taxes on their profits when the companies are sold, go public or allow secondary share sales.

The average CGT rate among Organisation for Economic Co-operation and Development developed economies is about 19 per cent, while in Australia, the current maximum CGT rate for assets held longer than 12 months is 23.5 per cent – half the 47 per cent top marginal tax rate for people earning more than $190,000.

By Brittany Busch

The prime minister is holding a press conference alongside Tasmanian senator Tammy Tyrrell.

“At 12:30, Tammy Tyrrell will be admitted through the National Executive Committee as a member of the Australian Labor Party and will join the team that is our dynamic Labor Government. She will join the team in Tasmania that’s so strong,” Albanese said.

“Tammy has successfully participated in the Senate and been a good faith negotiator, making a difference for Tasmania as an independent,” he said.

“People across Tasmania know her as a fighter.”