Two new tax measures designed to make investment in Australian start-ups more attractive have passed the Senate and will apply from the 2016-17 income year.
The Tax Incentive for Early Stage Investors and New Arrangements for Venture Capital Limited Partnerships aim to facilitate investment in innovative high-growth potential start-up companies and improve businesses’ access to venture capital.
The Tax Incentive for Early Stage Investors gives tax concessions to eligible early stage investors who invest in qualifying companies. The concessions include a capped 20% non-refundable tax offset and 10 year capital gains tax exemption for investments.The New Arrangements for Venture Capital Limited Partnerships provide a range of changes that will improve access to capital and make investing in venture capital more user-friendly and internationally competitive.