Early stage investor tax incentives

SUPPORT MECHANISM:

Provides a tax incentive (income tax reduction and capital gains tax exemption) for early stage investors in startups.

Increase the availability of angel investment capital to startups.

IMPLEMENTING AGENCIES:

Australian Taxation Office

ELIGIBILITY:

Defined as firms less than 3 years old, with limited net revenue (less than AUD 300,000 in the previous 12 months) and limited expenditure (less than AUD 1,000,000 in the previous 12 months). Must be an ‘innovation company’ under the Act.

Timeline:

Announced in December 2015, took effect on 1 July 2016.

RESULTS:

Strong anecdotal support, but too early to say.

CHALLENGES + LESSONS TO DATE:

Restrictive definition of startup. Difficult period between announcement and measures taking effect: created a funding gap while investors held off until tax incentives kicked in.

KEY ADVISOR(S) OR LEADER(S):

Wyatt Roy MP, StartupAUS

NOTES + ADDITIONAL CONTEXT:

Policy initially modelled on UK’s SEIS. Altered substantially for Australian context - particularly by restricting eligible companies to high-growth startups.

CURATED BY

StartupAUS , Global Talent Scheme Startup Advisory Panel
Australia
StartupAUS , Global Talent Scheme Startup Advisory Panel
Australia
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