Entrepreneurs are innovation’s essential agreement

Chapter 8 of the Cutler Review of Australia’s Innovation System, Venturous Australia, which considered the relation between taxation and innovation, made no mention of CGT. At least the Australian Taxation Office has now woken up and realised that the level and application of CGT in venture capital and private equity is a critical factor.

The 800-plus pages of 1999 Ralph Report also did not discuss this significant topic.

The Rudd Government is now having another review of the Australian Taxation System under leadership of Treasury Secretary Ken Henry. Who is putting forward the paper and analysis proposing the best taxation structures for entrepreneurs? Not the entrepreneurs, they are too busy being innovators and building their own businesses.

There have been many reviews of Australia’s innovation system: they are read and then forgotten. What we need is an institute that provides the analysis and focus to promote the concept of entrepreneurship and provide useful critiques of government policy.

Australia needs the entrepreneurship equivalent of the Lowy Institute for International Policy or the St James Ethics Centre.