The government’s tax carve outs are welcome, but they don’t get to the heart of the problem: Australia needs more people to take more risk.

The government has inadvertently underwritten a tobacco crime wave and is now trying to plug the revenue hole by increasing taxes on capital income.

Businesses with turnover of up to $10 million will be able to claim 50 per cent off their capital gains tax.

The government’s tax carve outs are welcome, but they don’t get to the heart of the problem: Australia needs more people to take more risk.

Leading investors and entrepreneurs say proposed changes to the government’s capital gains tax reforms have failed to solve some of the main problems.