I am guessing that this is based on Aussie tax rates.

"Now they have to pay capital gains tax. Based on their tax bracket the bill comes to 40%."

In the U.S. the top capital gains tax rate is 20% and for couples making less than $80,000 the capital gains tax rate is 0%. Read that again zero tax on capital gains.

For some people the right advice would be sell those assets before they change the rules, realize the gains at zero tax and reinvest. Everyone's situation is different and they should consult real professionals for better advice.

Regarding turning your baking hobby into a business. Making that a success is not about good baking it is about being good at running a business.

TEK