Tax incentives for start-up investors.

This article discusses tax incentives for start-up investors in Australia. The incentives are aimed at promoting investment in high-growth start-ups with a high degree of risk. Eligible investors who purchase new shares can receive a non-refundable carry-forward tax offset of 20% of their qualifying investments, up to a maximum of $200,000. Capital gains made on qualifying shares held for at least 12 months and less than 10 years are fully exempt from capital gains tax, while losses on shares held for less than 10 years are disregarded. To qualify as an early-stage investor, one must meet the "sophisticated investor" test or have a total investment of $50,000 or less in early-stage companies for the income year. Companies must meet certain criteria, such as having less than $200,000 in revenue and less than $1 million in expenses, to qualify as early-stage investments. It is the responsibility of the investor to confirm the eligibility of the company, although eligible companies typically advertise themselves as such. If a company is later found to be ineligible and the investor has already claimed the tax incentives, they will need to amend their claims. [Extracted from the article]

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