In brief
The Federal Government has introduced a Bill detailing tax concessions to incentivise investment into Australian startups.
While this is a positive step towards addressing the funding gap faced by many startups in Australia, the Bill's accompanying rules (designed to discourage fraud) are exceedingly complex. We encourage the Government to simplify the points-based system by providing clearer safe harbours for startups. Clarification of the application of the Bill to convertible notes will also be important, particularly for current holders of notes that are due to convert to issued shares after 1 July 2016.