New arrangements for venture capital investment
The Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 was enacted on 5 May 2016. It provides new tax incentives for investments in early stage venture capital limited partnerships. It also amends the early stage venture capital limited partnerships (ESVCLP) and venture capital limited partnerships (VCLP) regimes to improve access to capital and make the regimes more attractive to investors.
Broadly, from 1 July 2016:
- investors will receive a 10% non-refundable carry-forward tax offset on investments made through an ESVCLP, and
- the maximum fund size for new and existing ESVCLPs will be increased to $200 million.
Venture capital tax incentives and concessions
Encouraging venture capital investment in FinTech
On 3 May 2016, the Australian Government announced it is seeking feedback on how to ensure investors in FinTech start-up activities are eligible for the venture capital tax concessions.
The closing date for submissions is Friday, 3 June 2016.
For more information, see Encouraging venture capital investment in FinTechExternal Link on the Treasury website.
The Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 received royal assent on 5 May 2016. It includes new tax incentives for investors in early stage venture capital partnerships on or after 1 July 2016.