The Government has launched its National Innovation and Science Agenda. Included in the agenda is a variety of new measures and incentives that will be of interest to businesses and investors including:
- 20% non-refundable tax offset and Capital Gains Tax exemption for early stage investors;
- Relaxing the company loss rules to allow businesses to utilise losses if they carry on a ‘predominantly similar business’ (opposed to the ‘same business’ as is currently the case);
- Relaxing the depreciation limits on certain intangible assets;
- Reforming the insolvency laws to:
- Reduce the default bankruptcy period from three years to one year;
- Provide a ‘safe harbour’ for directors from personal liability for insolvent trading if they appoint a professional restructuring advisor;
- Ban ‘ipso facto’ contractual clauses that allow an agreement to be terminated solely due to an insolvency event, if a company is undertaking a restructure.
- Build on the recent Employee Share Scheme changes to allow companies to offer shares to their employees without having to reveal commercially sensitive information to competitors.
Should you wish to know more about the proposed reforms and how they might impact you or your business, please contact Murray Howlett, Josh Meggs or Kylee Smith from our Taxation Services Division on (07) 3023 1300.