Early Stage Innovation Incentive – Only A Few Weeks To Claim
So, what did you think about the Early Stage Innovation Incentive announcement in the Federal Budget on Tuesday?
The word innovation was mentioned BUT not in the true sense of the Federal Government further extending support to inventors, innovation and start-ups.
That is not correct!
The Government is making it easier for start-ups and innovative small businesses to raise capital.
Now you’re talking.
The Government released draft legislation to extend crowd-sourced equity funding (CSEF) to proprietary companies with the 2017-2018 Budget, to commence in September 2017 (more on this shortly).
So, the only current support that innovation and innovators have relates to legislation effective from 1 July 2016 – these are tax incentives!
Do you want to take advantage of this? You better hurry!
If you haven’t already done so you need to form your Early Stage Innovation Company (ESIC) in the next few weeks and raise capital from investors who will be able to claim a 20% tax deduction in their 2006-07 tax return on the money paid to the ESIC.
Now that is a great incentive.
What? If I invest $10,000 say in mid-Jun 2017 in an ESIC I get a $2,000 tax deduction in my 2016-07 tax return? Yes, you will, as long as the ESIC is a complying ESIC!
So, If I invest in mid-June 2017, do my tax return in mid-July and my tax return is assessed in mid-August I will pay $2,000 less tax? Yes, that is correct.
So, why isn’t this known and published by the Federal Government?
Maybe it is too complicated, still too much red-tape!
Whatever the reason the incentive is still there to take advantage of the tax deduction available to all investors in innovators and their invention… you only have a few weeks!
Do something about it today. Get your Early Stage Innovation Incentive.
Need to know more have a look at our eBook on www.exemplarinnovation.com
You can also contact us on email@example.com or call us on 02 9666 8766