Boost Juice Founder Hits Back at Labors Tax Changes

The founder of Boost Juice has lashed out at the Albanese Government's tax changes under the Federal Budget for crippling Australian small business.

Janine Allis, 60, started the iconic takeaway juice company Boost Juice in in 2000 and has overseen its growth to over 380 stores in Australia alone.

However, she fears Labor's changes to the Capital Gains Tax (CGT) discount and negative gearing will prevent other entrepreneurs from taking the leap and opening a business in Australia. 

Under Labor's changes, only those with existing negatively geared properties or who build new homes on vacant land will be entitled to claim the discount.

Negative gearing allows owners of investment properties to claim back their costs - like interest on loans, maintenance and rates.

Allis said the change could see property investment drop and remove a key tool everyday Australians can use to 'get ahead' and support their families.

The changes to the capital gains tax, applied to the profit made from selling assets, paid as part of income tax, will replace a current 50 per cent discount with indexation.

The original price of an asset will be adjusted for inflation, then tax charged on the sale profit compared to the inflated price. That will come into effect alongside a minimum 30 per cent tax on gains from July 1, 2027.

'The changes potentially could, in my opinion, destroy the core of what Australians are,' Allis said in a video on Thursday.

'Australians are the people that wanna have a go. 

'They want to have control over their own destiny and they want to have their own business or get ahead with an investment property.

'Australia, per head, has more small businesses than anywhere in the world, and the new Budget in my opinion is destroying that.'

While Australia isn't leading the world in number of small businesses per capita, it has an extremely high density of small businesses - about one per 10 people.

Allis emphasised the huge risk involved in opening a business.

She added there was less incentive for businesses to open in Australia when its assets - like land - would be subject to a higher CGT, of at least 30 per cent.

'People need to remember that when you start a business, you put everything on the line and most (businesses) fail,' Allis said.

'If I started Boost Juice in July 2027...I would put my house on the line, put everything on the line, work my absolute butt off, risk everything, be away from family. 

'To then eventually make a profit and give nearly 50 per cent to the government.

'Oh my god, that is just that is just so unfair.'

Allis claimed there would be two major consequences of the two huge tax changes.

'Number one - big businesses will not come here, it's too tax heavy, which means that we will not have opportunities for employment,' she said.

'Number two - we won't want to open businesses or start businesses because the risk of failure to reward doesn't add up.'

Allis also addressed the Labor Party's broken election promise.

Prime Minister Anthony Albanese in the lead-up to last year's federal election had promised not to change the existing negative gearing and CGT systems.

He has since defended going back on his word, saying he and his government 'changed our position'. 

'Governments have to say what they do and do what they say,' Allis said.

'If you tell people on an election that you're not going to be touching negative gearing and capital gains tax, you have to stick with it.

'The reason being is that people make decisions in business based on what you tell them. If you don't tell the truth or you change your mind, it's too big a decision.'

Allis finished her message by acknowledging she could get 'backlash' for taking a stance but warned 'the unintended consequences' of the tax changes could be 'horrific'.