Originally published by Andrew O’Connor of News24
17.08.2026
The founder of a $1.4 billion energy company says his business would not be possible under Labor’s controversial capital gains tax changes.
Francis Wedin came to Australia from the United Kingdom with hopes to escape the country’s “stagnation” and build a business via Australia’s “risk taking culture”.
He launched Vulcan Energy in 2018 after pulling his life savings out of his mortgage, and was banking on everyday investors to help launch the company.
This lifted the company from a small-cap player to a member of the ASX 200.
Mr Wedin stressed his success story could not be recreated after Labor scrapped the 50 per cent CGT discount for an inflation-adjusted model with a 30 per cent minimum rate.
“We want new Vulcans, new Fortescues, new Pilbara Minerals-type companies starting up, growing, paying taxes (and) making jobs,” he told News24.com.au.
Asked if a company like Vulcan could not exist under these tax changes, Mr Wedin agreed.
“100 per cent,” he said.
“It removes the incentivisation to take risk with your capital at that early stage.”
He said he heard of many young entrepreneurs, both in the mining and tech spaces, moving offshore as investors preference dividend paying companies or ETFs that had less risk associated with them.
“People are taking less risk with their capital, because why would you take capital risk if you’re going to be taxed at a top rate essentially,” Mr Wedin said.
“I think for the next generation of entrepreneurs, when we’re trying to increase productivity, (as) productivity is pretty dire, we want new waves of companies coming in.”
Treasurer Jim Chalmers will still allow early-stage investors, founders and employee share scheme participants to access the 50 per cent capital gains tax discount.
He will also extend the discount to companies with less than $10 million in annual turnover while other companies will be subject to the new inflation adjusted model.
He said he heard of many young entrepreneurs, both in the mining and tech spaces, moving offshore as investors preference dividend paying companies or ETFs that had less risk associated with them.
“People are taking less risk with their capital, because why would you take capital risk if you’re going to be taxed at a top rate essentially,” Mr Wedin said.
“I think for the next generation of entrepreneurs, when we’re trying to increase productivity, (as) productivity is pretty dire, we want new waves of companies coming in.”
Treasurer Jim Chalmers will still allow early-stage investors, founders and employee share scheme participants to access the 50 per cent capital gains tax discount.
He will also extend the discount to companies with less than $10 million in annual turnover while other companies will be subject to the new inflation adjusted model.
