The Turnbull Government has strengthened tax incentives available to investors in start-ups and 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 Parliament today.
The Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, said the Turnbull Government is committed to promoting innovation and growing the Australian economy.
"We have amended the income tax law to ensure that two National Innovation and Science Agenda (NISA) measures now deliver more support to innovative Australian companies and more certainty for their investors," Minister O'Dwyer said.
"This legislation provides certainty for investors who are looking to invest in start-ups and certain venture capital arrangements through an interposed trust. This ensures that investors are able to access the capital gain concessions provided by the Tax Incentives for Early-Stage Investors and the New Arrangements for Venture Capital Limited Partnerships measures."
The Bill also streamlines and simplifies the process by which ASIC may share 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.
"Simpler and more efficient information sharing arrangements will benefit Australian taxpayers by enabling better monitoring by ASIC and the ATO of illegal activities and strengthening tax compliance by companies and individuals," Minister O'Dwyer said.