Long-suffering start-ups trying to make it in the tough Australian market are set to get a touch of relief as part of the new 2015-16 Federal Budget.
Treasurer Joe Hockey announced new tax incentives for startups, specifically around crowdfunding.
[related title=”GIZMODO ROUNDUP” tag=”bd2015″ items=”1″]$7.8 million will be spent getting the Australian Securities and Investments commission to work up and implement a new regulatory framework for crowdfunding money raised by startups and how they might access it once it has been raised. The new framework will address the requirements for reporting and disclosing the use of crowdfunds by startups.
The Government has figured out that crowdfunding, also known as crowd-source equity funding (CSEF), is a good idea, and wants start-ups to be able to use it without running into tax roadblocks:
“CSEF is an emerging form of funding that allows entrepreneurs to raise funds online from a large number of small investors and has the potential to increase funding options available for entrepreneurs to assist in the development of their business,” the Budget papers note.
Start-ups are also now able to deduct professional expenses as soon as they start a business.
Lightbulb image via Shutterstock