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Sladen Snippet - New Tax Incentives for Start-up Investors – Consultation Paper

On 15 February 2016 the Federal Treasury released a consultation paper on new tax incentives for early stage investors, which is part of the National Innovation and Science Agenda (NISA) announced by the Government on 07 December 2015.

The Treasury has indicated that the new tax incentives for start-ups will provide investors with:

  • a 20 per cent non‑refundable tax offset based on the amount invested either directly in the qualifying startup or indirectly through a fund, up to an offset cap per investor of $200,000 per year;
  • for direct investment, a capital gains tax (CGT) exemption on those investments, provided they are held in the qualifying company for at least three years; and
  • for indirect investment through a fund, a CGT exemption on distributed capital gains provided the underlying investment was held for at least three years.
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