The startup tax workaround quietly reshaping local venture capital networks
- The federal government released a consultation paper detailing an alternative mechanism to help eligible early-stage startups retain their 50% capital gains tax discount, delaying final legislation until late 2027.
- Eligible independent firms must hold an annual turnover under $50 million, operate for under a decade, and issue equity after June 30, 2027.
- The broader market faces a July 1 transition substituting the flat 50% discount with cost base indexation and a 30% minimum tax rate.
Bailador Technology Investments (ASX:BTI)
This expansion-capital fund invests directly in high-growth information technology businesses with global addressable markets.
For the period ended April 30, the company reported a pre-tax net tangible asset backing of $1.67 per share and a post-tax NTA of $1.55 per share.
Bailador recently finalised a $5 million investment in wealth management platform DASH, which has seen its carrying value grow to $37.6 million.
Touch Ventures (ASX:TVL)
This listed venture investment entity targets scalable growth-stage companies across various digital and technology ecosystems.
The company reported a net financial loss of $15.42 million for the full calendar year of 2025.
Neuren Pharmaceuticals (ASX:NEU)
This biopharmaceutical company focuses on developing therapies for neurodevelopmental disorders, matching the longer clinical horizons reviewed in the treasury paper.
For the full year 2025, the firm generated a total royalty income of $65 million from its core drug DAYBUE, representing a 15% increase year-on-year.
The company projects its full-year 2026 royalty income will rise to a range between $70 million and $77 million.
Telix Pharmaceuticals (ASX:TLX)
This commercial-stage precision medicine company focuses on targeted radiation treatments and diagnostic imaging agents.
The firm generated US$230 million in total revenue during the March quarter of 2026.
The company reiterated its full-year 2026 revenue guidance of US$950 million to US$970 million, while projecting research and development spending between US$200 million and US$240 million.
Imugene (ASX:IMU)
This clinical-stage biotechnology business focuses on developing novel immuno-oncology therapies including its lead off-the-shelf CAR-T asset azer-cel.
For the half-year ended Dec. 31, 2025, the company reported a net financial loss of $37.82 million.
In its April 2026 quarterly update, the company reported net cash used in operating activities of $9.67 million, with a financial profile driven primarily by ongoing pipeline clinical trial milestones.
The bottom line
Changing capital gains tax structures introduce distinct operational environments for Australian tech and biotechnology entities.
While pre-revenue drug developers continue to deploy heavy research budgets, listed investment vehicles navigate shifting valuation gaps relative to their underlying assets.
Final legislative clarity on these proposed startup carveouts remains delayed until the second half of next year.
