Tax Incentives for early stage investors – April 2016

Article

Tax Incentives for early stage investors

Tax insights

CGT exemption A Bill introduced into Parliament on 16 March 2016 contained tax incentives for early stage investors. Namely, a non-refundable tax offset equal to 20% of amounts paid for newly issued equity interests in an Australian early stage innovation company (ESIC) and a CGT exemption for shares in an ESIC.

The Tax Laws Amendment (Tax Incentives for Innovation) Bill 2016 (‘the Bill’) introduced into Parliament on 16 March 2016 contained tax incentives for early stage investors in Schedule 1. The tax incentives proposed included a non-refundable tax offset to eligible investors (generally 20% of the amounts paid for newly issued equity interests in an Australian early stage innovation company (‘ESIC’)) and a Capital Gains Tax (‘CGT’) exemption for shares in an Australian ESIC. These measures were originally announced at the launch of the National Innovation and Science Agenda (‘NISA’) on 7 December 2015.


Schedule 2 of the Bill also introduced changes to the Early Stage Venture Capital Limited Partnerships (‘ESVCLP’) and Venture Capital Limited Partnerships (‘VCLP’) regimes, however this Insight only covers the incentives proposed under Schedule 1.

Tax Incentives for early stage investors
  • Contact us
  • Submit RFP
  • Our Solutions

    Progress your business growth and development

    Take a look at the products and services we offer.

    Tax services

    Business tax, International tax, Transfer pricing, Tax management consulting, Mergers and acquisitions – tax, Research and development and government incentives, Deloitte Private, Indirect tax, Global employer services and Business Process Solutions

    Indirect tax

    Indirect tax is becoming many governments' preferred method of revenue raising. It’s more critical than ever to manage indirect tcompliance and cash flows. Deloitte’s indirect tax experts understand the nuances of regulations, the importance of industry knowledge and the growing role of technology.

    Tax management consulting

    With consulting, technology and outsourcing experience, Deloitte TMC helps businesses meet the challenges of multi-jurisdictional tax operations, including compliance, reporting and risk management for direct and indirect taxes. 

Did you find this useful?