Opportunities for Innovative Companies and their Investors
The innovation incentive is now law and applies from 1 July 2016.
This “ideas boom” incentive aims to stimulate innovation and entrepreneurial activity in Australia by creating a system to entice investors to invest in Australian early-stage innovation companies (ESICs) – thereby enabling ESICs to attract investors to bridge any funding gaps and improve their cash flows.
To fully grasp the impact of this incentive on innovation activities in Australia - as well as whether you may qualify as either an investor or an ESIC - our complete Innovation incentive guide serves as a roadmap to give a more in-depth understanding of how the incentive works.
In our full guide we briefly discuss:
- What are the incentives?
- What type of investors can qualify for the incentives?
- What is an ESIC?
The guide will give more practical information and a broad understanding about how the incentive will operate so that we can continue our conversation with you about potential opportunities and benefits that may exist or become available for you and/or your business in the innovation space.
How can Nexia help you?
Only time will tell whether the investment incentive will be successful in stimulating investment in innovative activities in Australia.
Please contact your Nexia Adviser if you are a startup, if you are involved with innovative activities or if you are an investor in businesses involved in innovative activities and would like to know more about whether this new incentive may be available to you or whether you should restructure your business.
Our team of tax specialists at Nexia A&NZ can assist you in undertaking such an analysis and also help you to restructure your business (if necessary) so that you can obtain the best commercial and tax outcome possible. We will ensure that you understand the application of our tax laws before embarking on any transaction or project.
