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Tax incentives to invest in innovative, high-growth potential startups

Discussion in 'Other Asset Classes' started by Bullion Baron, 18th Jul, 2016.

  1. Bullion Baron

    Bullion Baron Well-Known Member

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    www.innovation.gov.au/page/tax-incentives-investors

    From the ATO...
    Tax incentives for early stage investors | Australian Taxation Office

    Anyone intending to take advantage of these new rules?

    Are there any online platforms where investors can review startup companies that meet the requirements and who are looking for investors?

    I know there are platforms such as Venture Crowd, but these seem to only cater for sophisticated investors, where as the tax incentives listed above are open to those who aren't (with limits).

    Presumably the CSEF will make this easier down the track: Making it easier to access to crowd-sourced equity funding | National Innovation and Science Agenda
     
  2. mrdobalina

    mrdobalina Well-Known Member

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    Go along to the Startup Weekends in your local capital city and meet some of the players in the tech game. @charttv can probably advise.
     
  3. sanj

    sanj Well-Known Member

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    this is a fantastic initiative imo. we are raising funds for a new hardware and software consumer electronics project that definitely qualifies under this and will again later this year and the level of interest has definitely risen due to these new tax breajks. people for the last 2 months or so have said they will wait until july to put their money in
     
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  4. Bullion Baron

    Bullion Baron Well-Known Member

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    Well if you will be considering funding from investors (under the limits imposed on retail investors) I'd be interested in taking a look, perhaps even worth posting in a new thread on the forum if it is allowed...

    I have my own startup, so really should try and get along to these. Though when looking for investment opportunities I'd rather stick to arm's length transactions where I can get a broader view of all the options available (across Australia), rather than hoping to find the best options at a local meetup.
     
  5. alexm

    alexm Well-Known Member

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    Sounds interesting. Any idea where I can get some information about these in Sydney?

    @charttv ?
     
  6. charttv

    charttv Well-Known Member

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    I don't have anything to do with the sydney event though you might wanna try sydney@startupweekend.org

    Also, check meetup.com for startup & entrepreneurial events in your area. I attend a few in Perth. Angel investors, vcs and others regularly hold pitch nights.
     
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  7. sanj

    sanj Well-Known Member

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    would love to but it's only for private, direct offering and not public and only for sophisticated investors. happy for you to PM me and i can send you details.

    alternatively there is a high and fixed interest offering too, secured by very significant but intangible assets and contracts, not sure if that's only for sophisticated investors as it's debt not equity, will check with my lawyer
     
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  8. Bullion Baron

    Bullion Baron Well-Known Member

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    Thanks, not sophisticated (yet ;)) & the debt won't qualify for the new tax benefits.

    Hopefully the new rules & CSEF will encourage companies to expand their offering to retail investors. Venture Crowd replied on Twitter that they would be offering a retail option once the CSEF legislation is in place.
     
  9. kum yin lau

    kum yin lau Well-Known Member

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    Hi, experience (and other people's experience) makes me very leery of any govt "carrot" in the guise of tax incentives.

    I personally rue the tree plantation thing that I invested in, fortunately only a few thousand bucks worth.

    People I know put in a LOT of money in the film industry startups thingys and got a lot of hassle from the ATO and the principals who used that investment. To be rude, they were shafted from both parties. The film makers didn't pay them what was due [the film by the way was Matrix] and the govt wanted to collect tax on the proceeds that they weren't paid.

    So my way is to steer clear, make my own money and pay my tax.

    KY