The government of Australia, run by Prime Minister Turnbull, has introduced a bill to parliament to offer tax incentives to entrepreneurs and startups, according to Business Insider Australia.
The proposed bill will introduce tax incentives for early-stage investors, such as 20% non-refundable carry forward tax offset on investments in qualifying companies, capped at $200,000 per investor per year and a 10-year exemption on capital gains tax provided investments are held for 12 months or more.
Venture capital limited partners also get incentives through the bill including investors receiving a 10% non-refundable carry forward tax offset on capital invested through an early stage venture capital limited partnerships and an increase to the maximum fund size to A$200m ($149m).
The bill was introduced on the last day before the Australian government went on its seven-week break.
Australia, and the Turnbull government in particular, has been looking at ways to support entrepreneurs and startups for a while. The prime minister previously appointed Bill Ferris, co-chairman and co-founder of Champ Private Equity, as innovation czar in November 2015.
Ferris’s role was to advise the government on how it can support entrepreneurs and startups.