Limiting startup tax incentives could exclude an important group of early stage investors

[1] One of the Coalition government’s innovation agenda is to provide a tax offset of 20 cents for every dollar that an investor spends into a startup, plus a capital gains tax exemption for up to 10 years.

[2] But these tax incentives can only be availed by investors whose annual earnings range from $250,000 and above or a net worth of more than $2.5 million.

[3] The tax incentives are good for some but it can be disadvantageous for seed capital providers like family and friends or informal investors.

[Source] Australian Information Technology News – Limiting startup tax incentives could exclude an important group of early stage investors