Dovetail Software CEO Ran the Numbers on Australia’s CGT Changes & You Won’t Like Them - Tekedia

Australia plans to replace the 50% capital gains tax discount on future equity grants with inflation indexation in the 2026 Federal Budget.

For startup workers holding zero-cost shares, that could mean much higher taxes when they exit and far less value from equity compensation.

Dovetail CEO Benjamin Humphrey says the change could cut the value of startup equity roughly in half and weaken a key hiring tool.

Critics warn the policy could make it harder for Australian startups to attract talent and recycle wealth into new companies.