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My biggest problem with the federal budget’s changes to the capital gains tax was that they could discourage the formation of new businesses and venture capital, thereby stifling entrepreneurship, investment, and productivity at a time when business investment is already near historical lows.
The potential problems are summarised as follows:
1. Equity incentives become less attractive
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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