The topic is tax.

It is Thursday, 28 May 2026, at 5:09 am.

Jim Chalmers says changing laws after they are introduced is normal.

In short:

Australia's biotech sector says Labor's tax changes are making it hard to recruit medical talent and attract investment.

The government is still talking to startups, but founders say the uncertainty is damaging confidence.

What's next?

Labor will introduce the tax legislation on Thursday while talking to startups and biotech firms about exemptions.

Labor's decision to go ahead with tax changes without settling details has top medical scientists reconsidering working in Australia.

The biotech sector is worried about the tax changes, and one entrepreneur says experts have lost interest in joining his company.

There is pressure on Labor to settle concessions for startups, and Jim Chalmers says he will take the time needed to get it right.

He says it will take weeks or months, not years.

The government wants to give the market some certainty.

Labor will introduce legislation with the new tax regime, negative gearing changes, and a tax offset for wage earners.

The government is working on what exemptions to give to startups and businesses affected by the tax change.

The plan replaces the 50% tax discount on profits with a reduction tied to inflation.

The government is being careful about exemptions to the tax legislation.

Startups say the new model will make it hard to attract investors because early-stage companies often start with a low cost base.

Labor had acknowledged this complexity and promised to consult with the tech sector, but founders are concerned the focus is too narrow.

Biotech makes the case for a specific exemption.

The biotech industry says it is exposed and must be protected from the new tax regime or Australia will lose its top medical minds.

The CEO of AusBiotech warns the tax proposal has adverse implications for investment and attracting talent.

The CEO of Oktopi says the tax changes remove one of the few tools Australian founders have to recruit talent.

Dr Rayner says going from a molecule to medicine requires rare and global talent, and Australia competes with companies offering higher wages.

He has decades of experience in biotech and says Labor's tax announcement has deterred two people from joining his company.

The uncertainty has meant they will not consider moving to Australia.

Tax settings are key to biotech investment.

Dr Rayner says the tax settings are critical to attracting investment, as biotech companies raise funds repeatedly over many years.

Labor's tax changes have set off a debate about the implications for small businesses and startups.

A biotech company raises capital multiple times, and the tax settings are part of every conversation.

Dr Rayner says without an exemption, every biotech company in Australia will consider moving abroad.

The impact on Australia's biomedical research base would be disastrous.

Professor Andrew Wilks says obtaining funding for research is already hard, and the tax changes will make it harder.

He says the biotech ecosystem is fragile.

Chalmers says a two-stage tax reform is not unusual.

He says he does not want to pre-empt the consultation process on exemptions for startups.

He is aware of issues like the calculation of cost bases for startups and how they interact with the new tax regime.

He justifies pursuing the first part of the legislation ahead of the detailed implementation work as normal for tax reform.

The government had some conversations before the budget about the tax changes, but more consultation is needed.

Tim Wilson argues the impact of the tax changes is an afterthought for the government.

He says Labor does not understand the tax proposals and is consulting with startups as an afterthought.

The government did not understand the impact of the tax changes on the startup sector.

They do not understand the impact on employee share ownership schemes.

It is Thursday, 28 May 2026, at 5:09 am.

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