New incentives for Australian start ups

Firstly, the Tax Incentive for Early Stage Investors brings tax concessions to eligible early stage investors who invest in qualifying companies, including a capped 20% non-refundable tax offset and 10-year capital gains tax exemption for investments. These eligible companies will have to meet a set of criteria in order to be determined as “innovative”. Additionally, they must be under three years old and have expenditure of $1 million or less with assessable income of less than $200,000 in the past income year. The tax cuts will also be available to non-sophisticated investors, but with an investment cap of $50,000 per year.

Secondly, the New Arrangements for Venture Capital Limited Partnerships brings a host of changes directed at improving access to capital and making investing in venture capital easier and internationally competitive.In specific, the fund size for Early Stage Venture Capital Limited Partners will be increased from $100 million to $200 million, with the tax offsets back-dated for existing funds.

These new tax incentives, along with the R&D tax incentive, are an enticement to innovation within Australia.

TaxTrex

TaxTrex reduces the risk of an AusIndustry audit by providing tools to manage an R&D claim service in-house from initial assessment to the claim submission. Relevant information necessary for the R&D claim will be:

• extracted,
• time-stamped; and
• securely stored.

The information gathered through the surveys will assist in substantiating the scientific process and purpose of conducted activities.

For more information please Contact Us

Watch the video