Startup tax overhaul arrives next week with three-year holding period cut
The Treasurer announced new startup tax laws dropping next week, slashing the holding period for eligible shares from five years to three.
The Albanese government will introduce startup tax changes next week. The aim is to redirect investment to early-stage businesses.
The legislation includes capital gains tax cuts for startups, changes to the Research and Development Tax Incentive, and new venture capital incentives. A key change: the minimum holding period for eligible shares drops from five to three years.
The proposed $10 million lifetime cap has been scrapped. Company eligibility has been extended from ten to fifteen years.
Qualifying early-stage investments will keep a 50 per cent tax discount. This is subject to innovation requirements and a $50 million turnover threshold.
The Treasurer says the changes will unlock an extra $400 million in research spending by young firms every year. Treasury will also expand the maximum size of venture capital funds from $200 million to $270 million.
- From 5 years to 3 years
- Holding period cut
- From 10 years to 15 years
- Company eligibility extended
- 50 percent
- Tax discount on qualifying investments
Why it mattersFaster tax breaks and easier access to venture capital make it cheaper and quicker for founders to build and exit early-stage companies.
AustraliaAustralian startups and investors will face lower tax barriers and faster capital access, potentially keeping more early-stage companies from moving offshore.
✓ Claims checked against the source. checked 1 h ago
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