Australia to Offer Tax Break on Venture Capital
March 16, 2016 Taxation in Australia
CANBERRA – In an effort to reduce Australia’s reliance on mineral resources, the national government hopes to spur the growth of innovative business by offering lucrative tax breaks to angel investors.
In a press conference on March 15th the Prime Minister of Australia Malcolm Turnbull announced that within a matter day the government will introduce new tax incentives of up to AUD 200 000 to investors into innovative startups.
Explaining the new attention to innovative business, the Prime Minister said “…We have been from an economy that was fired up by the mining construction boom… but inevitably it was going to tail off so what comes next? What comes next is innovation, open markets, investment, entrepreneurship, enterprise.”
The new tax incentives will grant a 20 percent tax rebate to angel investors funding new startups, and a further a 10 percent tax rebate for venture investment into existing startups, with both tax rebates being capped at AUD 200 000.