The complexity of tax law can make it cost-prohibitive for founders to properly structure start-ups, said Piper Alderman partner and corporate taxation specialist Will Fennell, who is a judge at this year’s InDaily 40 Under 40 Awards.

“In Australia, we have volumes of tax legislation because every time taxpayers find a loophole, the legislature adds another few pages to patch it,” Fennell said.

“Consequently, the tax law is unwieldy, complex and expensive to navigate.

“In the start-up phase, founders don’t always have the funds to structure their businesses properly – but it’s actually what they need to be doing to ensure the structure is efficient operationally but, importantly, also in relation to the growth and exit stages.”

He said greater uptake of existing tax incentives by sophisticated investors could help to provide much-needed capital for new companies to enable growth – especially for businesses in the state’s emerging industries.

“There are a number of highly attractive tax incentives and some of them aren’t utilised enough, perhaps because they’re not well enough known,” he said.

“One is the Early Stage Investment Company regime, introduced by the Turnbull government, which gives investors 10 years free capital gains [on their share purchase] and a carry-forward tax offset for investing in certain early stage companies.

“I don’t see it being utilised as much as I would expect.”

Piper Alderman acts for a number of local companies from the emerging industries sectors, including BiomeBank, a clinical stage biotech company working on treating and preventing disease by restoring gut microbiomes.

Fennell is hoping the Emerging Industries Award at this year’s InDaily 40 Under 40 Awards will “deliver a significant marketing opportunity for the recipient and give the winner a platform to take their business or career opportunities to the next stage”.

The award recognises an individual contributing to or a company operating in one of the emerging industries that will contribute to the prosperous future of our state.

The list of previous winners comprises The Andy Thomas Space Foundation executive officer Darcey Watson, Praxis Aeronautics managing director Katie Donaldson and OurMoneyMarket founder and CEO Adam Sutherland.

From a personal perspective, Fennell has an interest in the state’s digital technologies, such as blockchain, and has been advising Piper Alderman’s clients in the space for the past six years.

He pointed to Shell and Accenture’s work in using blockchain to track the production of sustainable aviation fuel (SAF) as an example of how emerging technologies can bring change to industries, including those driven to transition to a low-carbon economy.

“I believe the state’s emerging industries will play a key role in both securing the state’s economic future, and importantly helping to retain and also attract great talent here in South Australia,” he said.

Tickets are now selling for year’s InDaily 40 Under 40 Awards.

The gala night on June 8 at the Adelaide Oval will see twelve of the forty alumni announced as winners of the category awards.

Winners will also be featured the print edition of CityMag in June.

Purchase tickets.