Claire Clutterham (Sturt, Australian Labor Party) Share this | Hansard source

Measures in the federal budget with respect to tax incentives for venture capital reflect this government's understanding that we need to create an investment climate which encourages more capital to come into this country and which rewards innovation and risk taking. The budget seeks to improve the early-stage venture capital limited partnership and venture capital limited partnership tax incentives by adjusting for inflation and increasing caps on investee business assets and maximum fund sizes. This measure is getting lost in the noise, but we need to shout about it because it is a measure that directly encourages venture capital investment in Australian businesses.

Tax concessions will be available where early-stage venture capital limited partnerships invest in businesses with assets up to $80 million at the time of investment. This is up from the $50 million asset cap set in 2007. Investors may be able to access tax concessions with respect to investee businesses with assets up to $420 million, up from the $250 million cap set 20 years ago. Tax concessions will be available where venture capital limited partnerships invest in businesses with assets up to $480 million at the time of investment, up from $250 million set in 2002. The budget significantly increases these thresholds that have constrained these programs for over two decades. It deliberately encourages the type of private equity environment we need in this country and supports startups and early-stage companies.

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