The Australian director of a successful cryptocurrency company has told young Aussies to 'consider leaving' the country if they want to start their own business.

Michael Kong, director of Sonic Labs, called Labor's scrapping of the Capital Gains Tax (CGT) discount a 'slap in the face' for entrepreneurs in the startup industry.

Mr Kong sat down with Fred Schebesta, the founder of financial comparison website Finder, for his Crypto Finder podcast.

The pair discussed at length how the Federal Budget's new CGT system would negatively affect business owners, with Mr Kong insisting many Australians would be better off founding their companies in overseas locations.

'I'd say if the Budget gets passed and none of that stuff (the tax proposals) really changes in 2028 … then I'd honestly have to say maybe consider leaving, or at least leaving for a period of time,' he warned.

'Because you can go to other countries that are far more friendly, not just for the tax jurisdiction but also in the regulatory situation.'

CGT is a levy applied to the profit made from selling assets that have been held for over 12 months. It is charged as income tax, which those in the highest tax bracket would pay at a rate of 47 per cent. 

This had led to viral memes proclaiming the Albanese government has made itself a 47 per cent partner in Australian small businesses, but only taxpayers who earn more than $190,000 per year would pay the highest rate.

Capital Gains Tax is subject to a 50 per cent discount, effectively capping the taxation rate at 23.5 per cent.

But under Labor's changes, from July 1, 2027, that discount will be replaced with indexation and a minimum taxation rate of 30 per cent.

Under the new rules, the value of an asset when it was bought will be adjusted in line with inflation and its owner will only pay tax on the profit after that inflated price.

The highest CGT paid is the same as the highest income tax rate - 47 per cent.

Mr Kong, who co-founded crypto blockchain business Sonic Labs in 2018, said his company has moved its operations to The Bahamas, where tax and regulation systems are more welcoming to crypto entrepreneurs.

He believes the Albanese Government overlooked the effects of the CGT changes on asset-driven businesses because it's not a 'popular political issue', like housing.

'I think the politicians don't really care about this new and emerging industry,' Mr Kong said.

'You start up a business and it becomes really successful, and then the government can take 47 per cent of whatever you make instead of, with the discount, 23.5 per cent.

'Why would you want to run a business in Australia when you get taxed up to 47 per cent when you can go to, for example, Singapore or even New Zealand just across the pond, and you're paying zero per cent capital gains?' 

The sale of personal crypto assets in Singapore is usually not subject to tax, but companies trading cryptocurrency are.

New Zealand, like Australia, treats the sale of crypto and other assets as part of income, meaning profit is subject to income tax.

Mr Kong claimed the high tax rate, a maximum of 47 per cent, on asset sales was against the Aussie ideal of 'having a fair go'.  

'It's like a race to the bottom where everyone is just trying to take money from someone else instead of actually trying to do work,' he said.

He urged young Australian entrepreneurs to 'go to a jurisdiction where you think that your efforts are going to be more rewarded … it's just going to be a lot easier for you to build wealth'.

'It is a real slap in the face,' Mr Kong said.

'...Your money is going to government programs, so-called infrastructure, the costs are just way overblown, you're not getting any value for money and you just feel like other people who maybe don't want to take the level of risk and put in as much effort.'