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The 2026–27 budget
Labor, at both the federal and state levels, is now deep into a multi-year string of regulations despised by startup founders: the proposed Division 296 tax on unrealised superannuation gains above A$3M, the mooted increase to sophisticated investor thresholds (from $250k income / $2.5M assets to $450k / $4.5M), the abolition of non-compete clauses below the high-income threshold, the Right to Disconnect, Victoria’s work-from-home legislation, tightened ESS reporting requirements, and now the 2026–27 CGT reform.
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If your team is big enough to have well-defined departments, but you don’t have a few engineers scattered throughout these teams, you’re probably under investing in AI deployment. If you’re building an AI-enabled product, this should be especially embarrassing. You should hire some more engineers.
Is Australia destined to become a training ground for world-class founders and engineers, only to see them move to the US as their careers take off? This is not our destiny, but we need smarter, industry-friendly policy to build an alternative path, where startups start, thrive, and therefore stay in Australia. Let’s be the beneficiary of brain drain, not the victim.
Your software product today is a tool, and it might already be possible for you or a competitor to build an AI-first product that does the work for your customers without any ongoing effort on their part. If not, it’ll probably be possible soon. Either way, a level of disruption that was not possible a few years ago is now possible in almost every software category.