In Albo’s Australia, it seems if you don’t earn a wage, you’re a suspect. Farmers, investors, small business owners, and entrepreneurs — the very people who create jobs, build exports, and take the risks that make this economy tick — are being treated as tax dodgers. They’re not. And someone should say so.
With the PM backing down on parts of Treasurer Jim Chalmers’ “Nightmare on your street” Budget, I’ve been forced to reflect on my first positive business brush with Australia’s 31st Prime Minister, Anthony, “it’s not a lie, if you believe it” Albanese.
It was before the 2022 election, and Albo was rolled out as a would-be prime minister at a lunch laid on by the party for business leaders and the press. The message was that they — the ALP — had learnt from the Bill Shorten loss in 2019 and they were going to listen to business. No one expected them to be excessively pro-business, but the organisers made sure Paul Keating was a star participant in the let’s cosy up to business bash.
In his speech, Albo went out of his way to draw parallels with the reforming Hawke-Keating era and most there, if they weren’t rusted on Labor-haters, thought well if they deliver on this promise, these guys might be OK.
I always remember Albo giving me a friendly nod of the head as he departed and it was something that gave me mixed feelings. On one hand, was he saying I think we have made a good impression and it’s good to see you here to witness our ‘getting smart’ as a party. Or was it, thanks for coming, and I think we have fooled them.
Being a positive type, I opted to focus on the former, as I’ve always tried to avoid being a one-trick pony when it comes to looking at politicians and what they’re up to when it comes to the economy. If Labor gets it right, I give them a tick but if they screw up, the likes of Jim and Albo cop it.
The 2026 Budget, which was inspired by the crazy and unexpected landslide victory for Labor in May 2025, confirms for me that Albo either sold me a dummy, which I fell for, or he doesn’t really get the role that business plays in this economy/country he leads.
In case you missed it, the impassioned outcry against aspects of Chalmers “tax reform” as he likes to call it, has led to proposed changes.
This is what you should know.
- 2.7 million small businesses turning over up to $10 million would be eligible for the 50% capital gains tax (CGT) discount.
- The cut-off used to be $2 million.
- Right now. small businesses have access to four different CGT concessions, one of which is the 50% discount.
- Now, if you own the business for 15 years or more, there is no CGT payable if the turnover is under $2 million.
- The new tax proposals are that a business with turnover between $2 million and $10 million will only get the 50% discount CGT concession but it will be applied after the inflation-based discount is applied.
- The minimum 30% CGT rate, that the Budget’s cunning plan introduced, will then apply to the final net gain.
- Finally, the minimum 30% tax on discretionary trust distributions, which go to beneficiaries after the creator of the trust dies, will be dumped. Critics have been calling this a “death tax”.
Publicly reflecting on the backdown, which the PM is not calling, Albo showed his grasp on things economic and business, as well as investing is not the stuff of high distinctions at this country’s universities, where I once hailed from.
The AFR reported him saying the following: “I have seen editorial after editorial speaking about the tax system, and how it was too reliant upon pay-as-you-go workers’ taxes. What we’re doing is making sure that the tax system is fairer, that it treats income from assets more equally with income from work, which is overwhelmingly how working Australians earn their income and get by.”
Call me an economist who has canvassed my views on economics, politics and money for over three decades in some of the most watched, read and listened to media outlets, I have never read tax reform expressed in terms such as our tax system “was too reliant upon pay-as-you-go workers’ taxes.”
That’s an interpretation that suits a politician talking to voters who currently are running with their votes to Pauline Hanson, who is bound to be an even bigger target for the dirty tricks mob out there, with the surprise revelation that she is now the most-preferred for PM in the latest Resolve Monitor popularity poll.
What respected economic writers have said, Albo, is that we are too reliant on taxing income and we under-tax consumption of goods and services. That is, we need, say a 15% GST, like the Kiwis, and on lot more of stuff than we are currently paying. Our cousins across the ditch don’t have a comprehensive capital gains tax slugging all and sundry who take risks to build income.
By the way, the VAT in Europe is way over 15%, as the table below from taxfoundation.org shows.
Albo seems to think the only tax on income that needs to fall is taxes on wages, but small business people make profit and get taxed on their business success and taxed again if they have the audacity to draw income out of their business. These people mortgage their homes, hire people, collect GST, cope with landlords, endure the new age workforce demands of work-from-home and they have to become caring leaders of workers who have high levels of mental health stress.
If these people take home the same pay as say a public servant and get taxed exactly the same, I get it but I do think these people need to be respected for their social contribution and the risks they take.
Investors putting money into companies such as Megaport, which is doing a capital raise should not be singled out as tax dodging players not needing a 50% capital gains tax discount, but more as risk-takers who are providing money, so this company doesn’t have to borrow from a bank.
Albo and his crew don’t appreciate the other income earners and taxpayers, which include some of the biggest risktakers — farmers — who not only create jobs, prop up country towns but also earn export income that is pretty damn important to our GDP and employment levels that bankroll our lifestyles.
All Australian income earners should be treated equally but there’s nothing wrong for the leader of the country to recognise the trailblazers of business, the employers who pay the wages and the risk-takers who roll the dice on businesses and investments.
And if you don’t think they’re taking risks, then know that 60% of new small businesses close within three years and 50% of them are actually in profit! So, why do they close — it’s a bloody hard gig. Treasurers and PMs shouldn’t be hounding them with tough tax changes, an aggressive tax office and excessive red tape regulations.
I really wish that nod from Albo was saying: “I’ve got this and I know if I make it good for business, business will make it good for all of us, including his beloved wage earners.
