Over the past couple of decades, Australia, an island continent of 26 million that became rich by, among other things, mining natural resources, has developed into a modern powerhouse that actively works to foster a dynamic tech and startup scene. To fully capitalize on that progress, Australian startups will have to overcome challenges like shortage of access to late-stage capital and a scarcity of executives with scale-up experience. Australia is shaped just as much by its peoples as it is by its industry.
Why Australia is ripe for VC techcrunch.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from techcrunch.com Daily Mail and Mail on Sunday newspapers.
Australia’s 2021 budget
Australia’s 2021 budget, delivered on May 11 by Treasurer Josh Frydenberg, was designed to reduce tax compliance costs, boost investment in digital operations, build certainty in the tax system, and encourage business investment. The country is able to invest in improvements because its revenue collection is in a healthy position despite the COVID-19 pandemic.
The most significant corporate tax measures for tax directors to note include:
· A patent box regime at a 17% rate for medical and biotechnology patents;
· An additional year of full asset write-offs and loss carry-backs;
· Changes to corporate residency rules to include trusts and corporate limited partnerships;
Australia s 2021 federal budget introduced key changes including a highly anticipated patent box regime
Australia’s 2021 budget, delivered on May 11 by Treasurer Josh Frydenberg, was designed to reduce tax compliance costs, boost investment in digital operations, build certainty in the tax system, and encourage business investment. The country is able to invest in improvements because its revenue collection is in a healthy position despite the COVID-19 pandemic.
The most significant corporate tax measures for tax directors to note include:
A patent box regime at a 17% rate for medical and biotechnology patents;
An additional year of full asset write-offs and loss carry-backs;
Venture capital tax breaks under review
Share
The federal government will review venture capital tax breaks, raising hopes in the industry that the incentives will be broadened to entice investment.
Buried in the government’s digital economy strategy measures announced on Thursday was a pledge to review the venture capital tax concession programs to “ensure the programs are fit-for-purpose and support genuine early-stage Australian start‑ups”.
Under the current Venture Capital Limited Partnerships rules, investors funding venture capital fund-backed businesses valued at up to $250 million are eligible for tax breaks.
Australian Investment Council chief executive Yasser El-Ansary said the valuation threshold was too low and needed to allow venture capital backed businesses to grow bigger.