On 7 December 2015, the Government announced the National Innovation and Science Agenda (NISA), including new tax incentives for early stage investors.
The tax incentives will provide concessional tax treatment for investors through a non-refundable tax offset and a capital gains tax (CGT) exemption on investments that meet certain eligibility criteria.
The incentives announced by the Government will be available according to a number of key qualifying definitions: for investors; funds which pool investors’ equity; and innovation companies. The Government wants to further develop the principles for eligibility for the incentive to ensure it is appropriately targeted.
A cornerstone of this consultation is the definition of an innovation company. The Government is keen to hear from stakeholders on the appropriate definition of an innovation company and how the eligibility principles and criteria can leverage off existing industry concepts and business practices.