Business Insider (Australia) reports that Australian government has followed through with plans to offer tax incentives to entrepreneurs and startups.
Australian Treasurer says bill to change tax laws for startups introduced to Parliament late March.
Following an announcement during December 2015’s Innovation Statement, the Australian Treasurer outlined the development of new measures during the introduction of the Tax Laws Amendment (Tax Incentives for Innovation) Bill 2016.
The Australian government consulted with investors, industry bodies, universities and the start-up community to incentivise innovation and reward greater risk-taking, while considering the integrity and sustainability of the Australian tax system. The new laws will offer the following:
Tax incentive for early stage investors
- Concessional tax treatment to investors to promote investment in innovative, high-growth potential start-up companies
- Includes 20% non-refundable carry forward tax offset on investments in qualifying companies, capped at $200,000 per investor per year
- 10-year exemption on capital gains tax, provided investments are held for 12 months or more
New arrangements for venture capital limited partnerships
- To deliver changes to the tax treatment of early stage venture capital limited partnerships (ESVCLP) to attract more investment into venture capital.
- Investors to receive 10% cent non-refundable carry forward tax offset on capital invested through an ESVCLP.
- Maximum fund size for new and existing ESVCLPs will be increased to AUD$200 million with a number of reforms made to the income tax treatment of venture capital more generally.
With speculation that the Australian government will call an early election, the AUD$1.1 billion innovation and science policy is a centrepiece of the government’s re-election campaign.
If you’re an Australian business looking to take advantage of the new measures and branch into the New Zealand market, Alliott NZ provides strategic business guidance and practical financial advice on how to structure your business here. Contact Greg Millar or Vanessa Williams on +64 9 520 9200 to discuss your particular situation and receive advice that is relevant to you.
Source Business Insider (Australia)