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.
Australian Taxation Office
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.
Announced in December 2015, took effect on 1 July 2016.
Strong anecdotal support, but too early to say.
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.
Wyatt Roy MP, StartupAUS
Policy initially modelled on UK’s SEIS. Altered substantially for Australian context - particularly by restricting eligible companies to high-growth startups.