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Government strengthens NISA tax incentives and tax compliance

Tuesday, March 28, 2017

The Australian Government has strengthened tax incentives for investors in start-ups and has simplified information sharing between the Australian Taxation Office (ATO) and the Australian Securities and Investments Commission (ASIC) with the passage of the Treasury Laws Amendment (2017 Measures No.1) Bill 2017 through the Australian Parliament this week.

The legislation provides certainty for investors who are looking to invest in start-ups and certain venture capital arrangements through an interposed trust. This will ensure that investors are able to access the capital gain concessions provided by the new tax incentives for early stage investors and arrangements for Venture Capital Limited Partnerships measures delivered through the National Innovation and Science Agenda.

The bill also streamlines and simplifies the process by which ASIC shares confidential information with the ATO. The new process mirrors the existing information sharing arrangements ASIC has with the Reserve Bank of Australia and the Australian Prudential Regulation Authority.

Read the media release.

Learn more about the National Innovation and Science Agenda tax incentives.