James Kirby

But I would put it this way.

I wouldn't take it so seriously in terms of the preciseness of all this because I can't see how the ATO could double check.

It can't be done so easily.

All right.

As long as you were earnest and honest and did your best.

All right.

Question from Simon.

I like this question.

There are media reports, that'd be from people like the Australian newspaper, that the 50% capital gains tax discount would be axed in favour of inflation indexation on new investments across every asset class, including shares.

If this happens, do you think it will potentially kill the startup community because the tax payable when selling shares in a successful venture will tend towards the top marginal rate of 47%,

instead of 23.5% as it is now.

Surely this will incentivize the majority of new founders.

This is a terrific question, Simon.

I was involved, I was a shareholder in a startup myself.

We started with, you know, we had three people and we ended up with 50 or 60.

We sold...

And I learned the hard way about capital gains tax and how it kicks in.

You don't realize, I suppose, when you begin something like a startup, how serious it might be because you don't assume you're going to win or that it's all going to pay off.

The argument put forward by many entrepreneurs is that the system rewarded them for their risk and their hard work.

But a tax person would say, but that's not, sorry, that's not actually the nature of capital gains tax.