Warnings that startup founders will flee Australia to avoid paying a higher capital gains tax are unfounded, a Senate inquiry has been told.
Under changes proposed by the federal government, the capital gains tax discount of 50 per cent will be replaced with an inflation-indexed model and a 30 per cent minimum rate.
That means the maximum marginal tax rate for startup founders, who often have a negligible initial capital base, will double to near 47 per cent.
