The government needs to change course on its capital gains tax reforms. As they stand, they do not work for people starting, joining and investing in businesses that take real risk – the very activities we need to get out of our productivity slump.
The government has already conceded that its indexation model of taxing capital doesn’t work for mobile, high-growth, low-capital firms . But its cure – the Innovative Business CGT Concession (IBCC) – is complex, unfair, and leaves many businesses and investors facing internationally uncompetitive tax rates.
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