A spokesperson for Treasurer Scott Morrison has confirmed that the government will consider abolishing the Capital Gains Tax on investments in startup companies. The policy was proposed by back-bencher David Coleman as a way of encouraging investment in innovation.
If the policy is adopted it will mean that investors will not be taxed on any gains that they make on investments in companies that that are less than two years old, and that bring in less than $1 million in annual return.
According to StartupSmart, Australia is lagging behind the rest of the developed world when it comes to rates of start-up business formations. In order to boost innovative growth, it is important that future policies provide an incentive for, and reduce the risk to, these would-be investors.
Based on an article published by startupsmart.com.au
For further information please contact