New incentives to boost investment in start-ups

Find out about tax breaks to make investing in a start-up more attractive…

Do you want to invest in a start-up? Or maybe you have an innovative idea that you need funding for?

Two new tax incentives designed to make investing in Australian start-ups more attractive started on 1 July 2016.

Who will benefit?

The tax incentives will benefit:

1. innovative companies

2. investors

3. venture capital funds.

What are the tax incentives?

Incentive one

Tax breaks will be given to investors who support innovative startups, including:

1. A 20% non-refundable tax offset on investment capped at $200,000 per investor, per year.

2. Modified capital gains tax for qualifying investments held for at least 12 months and less than ten years.

Incentive two

New arrangements for Venture Capital Limited Partnerships will:

1. improve access to capital

2. make investing in venture capital more user-friendly

3. make investing internationally competitive.

Find out more…

Check out the Australian Taxation Office’s website - Tax incentive for early stage (angel) investors.