Banks back focus on technology skills, start-up investor tax incentives

A federal Liberal MP says the government is considering effectively abolishing capital gains tax for investments in very-early-stage companies.

Federal Liberal MP David Coleman, a former technology entrepreneur and venture capital investor, says the government’s innovation statement is considering changes to the tax system to encourage investment in start-up companies and seek to lift technology skills.

At a StartupWeek Sydney session on fintech hosted by The Australian Financial Review and Reinventure Group on Monday, Mr Coleman said he is talking to colleagues about the abolition of capital gains tax for investors in start-ups, a move that would deepen the pool of growth capital available for entrepreneurs.

The government innovation statement, to be released in December, may also seek to address technology skills shortages by making it easier for start-ups to hire from abroad and by proposing programs to re-educate local workers, he suggested, as technological disruption threatens to change the shape of the labour force.

“Tax is one of the biggest levers government possesses, and we should be looking at effectively abolishing capital gains tax for investments in very-early-stage companies,” Mr Coleman said.

Source: Banks back focus on technology skills, start-up investor tax incentives