Viral Tax Claim: Anthony Albanese’s Role as ‘Business Partner’ Sparks Controversy Post-Budget

In a satirical twist on digital culture, AI-generated memes are making the rounds on social media, taking aim at the federal government’s proposed changes to capital gains tax. These memes have caught the attention of business circles, with many entrepreneurs expressing concern over the potential impact these reforms could have on their operations.

Among those voicing their apprehensions are startup founders and owners of small businesses. They argue that Prime Minister Anthony Albanese’s tax reform plans would effectively make the government a “47 percent silent partner” in their ventures. While experts caution that this claim is exaggerated, it reflects the unease felt by many business owners.

The viral campaign includes edited images of Albanese performing everyday business tasks such as serving customers, laying concrete, cooking pizzas, and stocking shelves. The captions suggest the government would take almost half of any profits from future business sales.

Carlos Cordova, who has been at the helm of a food business for nearly ten years, shared his story with SBS News. “We’ve poured all our savings, even what we set aside for holidays and short breaks, into keeping the business afloat,” he explained.

“Staying competitive has become increasingly challenging,” Cordova admitted, highlighting the financial strain his business is experiencing.

Originally a Labor supporter, Cordova now feels disillusioned. He voiced his frustration, stating, “I voted for them, believing the CGT changes wouldn’t happen. I feel deceived and won’t be casting my vote for Labor in the future.”

Cordova took part in the AI meme trend, posting a fake image of himself with the prime minister on social media over the weekend.

“We would like to formally welcome our new business partner, Anthony Albanese,” it reads.

“After Janet and I spent just under 8 years building Sur Direct from the ground up, the markets, the manufacturing, the sleepless nights, the risks, the sacrifices, we thought it only made sense to partner up and basically hand over 47% of the business.”

How will the changes work?

This social media trend grew after last week’s federal budget, when changes to CGT were announced. Labor had ruled out changes in the lead-up to last year’s federal election.

The government has proposed replacing Australia’s long-standing 50 per cent capital gains tax discount with a new inflation-linked system. Under the proposed changes, some high-income earners could face tax rates of up to 47 per cent on certain capital gains.

However, experts say the memes exaggerate the impact of the changes as the reforms apply to profits from the sale of assets, not to regular business income or daily profits. They also say many small businesses would still qualify for existing tax concessions.

Independent economist Saul Eslake said the suggestion that reforms would somehow make the government or the prime minister a 47 per cent shareholder in every business is “completely fictitious”.

“What you pay capital gains tax on is the increase in the value of assets which you own when you sell them,” he explained to SBS News.

“Under the changes the government is proposing, Australians will get relief from the impact of inflation on the cost base of those assets.

“And in fact, for many assets, including shares and units, the system of capital gains taxation which the government will be bringing into effect from one July next year is actually more concessional than the 50 per cent discount that’s applied to capital gains since 1999 when it was changed by John Howard and Peter Costello,” he said.

“That system has primarily benefited investors in houses whose prices have risen on average over the period since then by about 7.5 per cent a year, which is more than double the inflation rate, which has averaged just under 3 per cent per annum over that period.”

Cordova acknowledged that the social media campaign and 47 per cent figure were overblown for effect, but maintained that businesses like his are doing it tough.

“I would ask the government to support people that are wanting to get ahead, wanting to employ people and wanting to put Australia first,” he said.

“Businesses are suffering and I think everyone else is as well.”

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