By Cliona O’Dowd
Fund manager Geoff Wilson is ramping up his war on Labor’s tax changes, accusing the Albanese government of economic vandalism as he launches a campaign to halt the reforms.
The Wilson Asset Management founder and chairman will on Monday issue a call to arms to his 130,000 shareholders, urging them to sign a petition protesting the capital gains tax changes.
A social media campaign, led by Mr Wilson, will push the petition into the broader public sphere.
The tax reforms, which will see the 50 per cent CGT discount scrapped in favour of an inflation-based tax model, are a tax on aspiration, investment and productivity, Mr Wilson will say in an email to shareholders on Monday.
“When risk-taking is taxed more heavily, fewer Australians invest, fewer businesses are built, economic growth slows,” the email will say, as he urges investors to stand against the reforms.
The petition is Mr Wilson’s third major campaign against Labor’s controversial tax policies of recent years.
The fund manager, now a persistent thorn in Labor’s side, was the architect of the campaign against the party’s failed 2019 tax policies that cost them the so-called unlosable election.
Mr Wilson also spearheaded last year’s campaign against Labor’s efforts to tax unrealised gains in super.
He said the push against the proposed CGT changes was the largest grassroots campaign Wilson Asset Management had undertaken. “The petition is only the first step. We will be collecting detailed demographic and geographic data to understand how these changes affect Australians across different age groups, professions, industries and regions,” Mr Wilson told The Australian.
“We believe that the government has fundamentally underestimated how many Australians are affected by these changes,” he said.
“This is not a debate about the very wealthy. It is about teachers, nurses, tradies, small business owners, farmers, retirees, professionals and younger Australians who are trying to build financial independence through long-term investment.”
Labor has been under fire over its tax proposals since they were announced on budget night almost two weeks ago.
One of the more perverse outcomes from the changes, which will see the CGT discount scrapped for all asset classes, including shares and crypto, is that it will drive investors away from growth investments in favour of slow-and-steady blue chip dividend payers.
Critics have warned it will punish young investors and make Australia’s productivity challenge even harder, while entrepreneurs have threatened to leave the country as they seek out more tax-friendly environments.
“This campaign is not about defending privilege – it is about defending aspiration and ambition,” Mr Wilson said.
“Australia has always encouraged people to save, invest, take risks and build something for themselves and their families,” Mr Wilson warned.
“These changes move the country in the opposite direction”
“Our objective is to build the largest evidence base yet assembled on the impact these policies will have on investment behaviour, wealth creation, retirement planning and economic confidence.
“We will use that information to inform policymakers, parliamentarians and the broader public debate.”
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