Spread betting

The Australian Tax Office issued a decision in March 2010 saying “Yes, the gains from financial spread betting are assessable income under section 6-5 or section 15-15 of the ITAA 1997”.

Similarly, any losses on financial spread betting contracts are deductible.

This has resulted in a much lower interest in financial spread betting in Australia than the UK where this is not assessable income.

Maybe the best way to encourage investment into tech businesses in Australia is to relax this ruling but just for spread betting on qualifying technology companies.

The bookies would then reinvest a slab of their profits making sure their are enough ‘horses’ running.

Combined with equity crowd funding it would actually work. Unholy yes, but practical.