Submission to Tax Incentives for Early Stage Investors Consultation

Submission to Tax Incentives for Early Stage Investors Consultation

26th February, 2016

As part of the National Innovation and Science Agenda (NISA), the Federal Government will provide a non-refundable tax offset and a capital gains tax exemption for early stage investments in innovation companies. The aim of the tax incentives is to encourage investment in Australian innovation companies that may have difficulty accessing equity finance to assist with commercialisation. A consultation paper was released to discuss the principles and eligibility criteria for the program.

In AAMRI’s submission we outline some issues with the proposed eligibility criteria for ‘innovation companies’, including overly restrictive requirements around income, expenditure and the global applicability of the company’s innovation. We also argue that the program should not be restricted to those investors who pass a ‘sophisticated investor test’ as suggested in the consultation paper.

AAMRI’s full submission can be downloaded below.