Jim Chalmers’proposed taxing of unrealised gains threatens to slow investment funding for start-ups

A serial entrepreneur says a superannuation tax grab by the Albanese government is threatening the venture capital sector and risks turning Australia into a “Banana Republic”.

Start-up funding is on the line with the proposed taxing on unrealised gains.

Serial entrepreneur David Millhouse has taken aim at the Albanese government and issued a stark warning that the move to tax unrealised gains risks killing the golden goose of Australia’s venture capital industry.

The founder of Brisbane-based ActiumAI says Treasurer Jim Chalmers’ proposed taxing of unrealised gains, as part of a move to increase tax on super balances over $3m, threatens to slow investment funding for start-ups.

“The taxation of unrealised capital gains, apart from being egregious in principle, will destroy swathes of Australian industry,” Millhouse says.

“This will extend to private venture capital investments, venture capital funds, Managed Investment Schemes, and a considerable proportion of ASX listed companies. And any other illiquid long-hold asset.”

Dr David Millhouse, founder of Brisbane-based ActiumAI.

It’s pretty serious and Millhouse says that from the reforms of the 1980s, Australia risks a return to Paul Keating’s “Banana Republic” (1986) and former Singapore prime minister Lee Kuan Yew’s “White Trash of Asia” gibe.

Millhouse (illustrated), who has managed business across various countries, says Singapore is already reportedly canvassing Australian entrepreneurs to set up business in Asia rather than risk facing large future tax bills on unrealised, non-cash capital gains.

“There will be employment losses, including highly skilled employment. Australia’s best export could be its scientists, engineers, and entrepreneurs,” he says.

“Because there will be no venture capital market to support their endeavours. It will be an uninvestible asset class.”.

Rare catch

They’re saying it’s a pearler of an opportunity with the largest of just three land-based oyster operations in Queensland on the market.

Leisa and Andrew Robson are selling Kooringal Oyster Farm on Moreton Island, after moving from NSW and successfully revitalising a previously abandoned island lease.

The aquaculture licenses held by Kooringal Oysters are primarily focused on Sydney rock oysters

The asset comprises about 17ha of leasehold land, a 600m airstrip, and nine aquaculture leases totalling around 69.5ha, offering significant potential to become the largest oyster-producing farm in Queensland.

Dozens of Kooringal oysters from the farm.

The oyster farm is being sold by JLL’s agribusiness team’s Bart Norris, Fergus Russell and Clayton Smith.

Norris said the turnkey aquaculture investment offers major development potential, pristine environmental conditions, and naturally occurring disease-free growing areas free from land run-off in the pollution free open waters off Kooringal, Moreton Island.

“With nine aquaculture leases, it is Queensland’s largest land and water-based oyster farm,” he says.

Sleepout time

It’s time for the bizoids to get their sleeping bags out of the cupboard and find a piece of cardboard for the annual Vinnies CEO Sleepout.

Rowland boss Geoff Rodgers says he’ll be rolling out his piece of cardboard for the 15th consecutive year this time at The Gabba on June 19.

The annual event brings together Brisbane’s business and community leaders to raise critical funds and awareness to help Queenslanders out of homelessness.

Rodgers says on average, every day 240 people in South East Queensland reach out for help to escape homelessness.

“Sleeping rough for a night is uncomfortable — but nothing about this crisis should make us comfortable,” he says.

Rodgers says over the years – thanks to generous donors – he has been able to raise more than $624,876 to help Vinnies provide crisis accommodation, food, utilities, and essential support for those in need.

Originally published as Jim Chalmers’proposed taxing of unrealised gains threatens to slow investment funding for start-ups