Your shopping cart is empty
New tax incentives for investors in start-up companies
Published on 01 Feb 17 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
Recent changes to the law provide tax incentives to encourage investment in innovative start-up companies. These changes have been implemented as part of the government’s National Innovation and Science Agenda policy to align the tax system with a culture of entrepreneurship and innovation, and to encourage new investment in small Australian innovation companies with high-growth potential. The tax incentives permit investors to claim a 20% non-refundable carry-forward tax offset on their investment in an “early stage innovation company” (ESIC) which is generally capped at $200,000 annually. Investors may also disregard a capital gain on the disposal of their interests in an ESIC, provided the interests have been held for at least 12 months and not more than 10 years. This article considers the conditions for accessing the tax incentives, as well as some of the risk and compliance issues that may arise.
Author profiles
Mark Gioskos
Mark Gioskos, FTI, specialises in taxation and revenue law. He has extensive experience in Federal, State and Territory tax and commercial matters and has acted for governmental, public and private entities and individuals. Mark is a Senior Fellow of Melbourne Law School, The University of Melbourne, where he teaches within the Melbourne Law Masters program. He serves as a member of the Tax Bar Association committee and The Tax Institute's Victorian State Council. He holds a Master of Laws from The University of Melbourne and is a Fellow of The Tax Institute. Mark was named as a winner of the Australasian Lawyer 2022 Rising Star awards. He has authored several journal articles and is a regular presenter at conferences and seminars. - Current at 08 May 2024
Travis McCarthy
The Tax Institute is Australia's leading professional association and educator in tax providing the best resources, professional development and networks.