June 2026 – AusAgritech warns proposed tax changes could drive founders, capital and company value offshore
“Australia needs policy settings that reward risk, support patient capital and make it rational for founders to build here. This Budget, as it stands, does not do that.”
Rob Hulme, AusAgritech President
The 2026–27 Federal Budget contains genuine wins for farm businesses, but for the agritech companies building the technology that underpins modern Australian agriculture, it sends a troubling signal: build here at your peril.
AusAgritech is calling for urgent consultation with the Australian Government on proposed tax changes that risk weakening founder confidence, investor appetite and Australia’s ability to retain agritech talent, intellectual property and company value onshore.
As the peak national body for agritech in Australia, AusAgritech is concerned that proposed changes to capital gains tax and Research and Development Tax Incentive refundability could make it harder for Australian agritech companies to attract investment, scale globally and remain headquartered in Australia.
From 1 July 2027, the 47 per cent CGT discount will be replaced with a cost-base indexation model and a minimum 30 per cent tax on net capital gains. While the Government’s target was the property market, the impact on agritech and all Australian innovation risks becoming collateral damage.
AusAgritech members are already modelling offshore structures, reviewing future exits through jurisdictions such as Singapore and the United States, and questioning whether Australia remains the right place to build a globally competitive agritech company.
One founder of an Australian agritech company put it plainly:
“After the millions of dollars in tax we’ve already paid, the jobs we’ve created, the farmer productivity we’ve increased … we ain’t giving up 50% of our gains. The policy settings are destroying innovation and entrepreneurial enterprise.”
This is not an isolated view. It is the dominant conversation across AusAgritech’s membership.
“Our members are telling us clearly that these proposed changes have shaken confidence,” AusAgritech said.
“At the very moment Australia should be backing agritech companies to scale, these measures risk pushing founders, capital and future company value offshore.”
The equity problem is an agritech problem
Agritech startups cannot compete on base salaries offered by larger sectors and corporates. Offering equity through ESOP programs is key to attracting, recruiting and retaining key staff, including engineers, agronomists and data scientists, needed to build world-class products. If the gains on that equity become materially less attractive, the financial logic of accepting equity in lieu of wages collapses – and with it, agritech’s ability to compete for talent.
R&D does not stop at year ten
Also buried in the Budget: from 1 July 2028, the R&D Tax Incentive cash refund will be restricted to companies operating for fewer than ten years. For an agritech company developing and commercialising innovations over long agricultural production cycles, ten years is often still part of the growth phase. Converting the refund to a non-refundable offset for these companies does not make the R&D less real. It just makes it harder to fund.
Exits build ecosystems
AusAgritech is also concerned that the proposed capital gains tax changes could reduce Australia’s competitiveness and well-established reputation as a place to build, back and exit high-growth companies.
Successful agritech companies generate benefits well beyond founders and investors. They create skilled jobs, support regional capability, improve farm productivity, open export pathways, generate tax revenue and help Australia retain sovereign capability in food and fibre systems.
Successful exits also recycle capital back into the ecosystem. They create repeat founders, angel investors, mentors, experienced teams and confidence for the next generation.
Consultation must deliver
Treasurer Chalmers has acknowledged that startups and venture capital have a different kind of cost-base calculation, and confirmed formal consultations are underway with the Tech Council of Australia and the Australian Investment Council. The Tech Council has said there is work to do to ensure Australia’s startup community does not become collateral damage. AusAgritech agrees. Commitment to consult is not a carve-out. The sector cannot build on uncertainty.
AusAgritech is calling for:
– a meaningful CGT exemption or appropriate treatment for startup and growth-stage equity, recognising agritech’s long development cycle and holding cycles
– protection of ESOP tax treatment so equity remains a viable talent tool
– review of the R&D ten-year cash refund cap, recognising that longer agricultural innovation timelines do not typically fit a software-startup model
– mechanisms to keep Australian agritech IP, talent and company value onshore
– formal engagement with AusAgritech before implementation is finalised
AusAgritech will work alongside our members, the Tech Council of Australia, the National Farmers’ Federation, investors, and the government to ensure the final settings support, rather than weaken, Australia’s agritech future.
About AusAgritech
AusAgritech is Australia’s peak body for agricultural technology, representing founders, investors and enablers across the agrifood supply chain. Agritech encompasses the use of technology, digital solutions and innovative products to increase efficiency and profitability across the agrifood supply chain. AusAgritech’s mission is to elevate Australian agritech globally by fostering connections, driving innovation and advocating for growth within a thriving, interconnected ecosystem.
Read AusAgritech’s National Agritech Strategic Plan White Paper.
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marketing@ausagritech.org
http://www.ausagritech.org.au
