By David Rogers
Wilson Asset Management fires a broadside at the Federal Government, telling the Productivity Commission that its new capital gains tax regime “directly undermines its own productivity” agenda.
In a 17-page submission, the Sydney-based fund manager argues the Treasury Laws Amendment Bill 2026 makes productive capital more expensive – precisely the opposite of what the government says it wants.
“You cannot claim to support business dynamism while making productive capital more expensive,” the submission states,” says WAM chairman and founder Geoff Wilson.
“Those two ideas simply cannot coexist.”
He warns the changes drive investment away from small and emerging companies and towards a handful of mature, high-dividend businesses – concentrating Australia’s already shrinking equity market further.
The submission notes the local market has fewer listed companies, fewer IPOs and growing concentration among the largest names.
“This policy tells millions of Australians to stop backing tomorrow’s winners and instead buy yesterday’s incumbents,” Wilson says. In his view the core problem is straightforward.
“Capital follows incentives. Business growth follows productive capital. Productivity follows business growth. The government’s capital gains tax changes break that chain.”
To fix it, Wilson recommends the Productivity Commission adopt a permanent “capital formation test” – a framework requiring every future investment policy to be assessed against its impact on productive capital, entrepreneurship, business investment and productivity.
“Governments should stop asking only how much tax a policy raises and start asking how much productivity it destroys,” Wilson adds.
“Australia never taxes its way to higher productivity. It has to invest its way there.”
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