Perth tech start up conducting series A funding round under new ATO rules

by Secure2Go Administrator|July 8, 2016

The Australian Taxation Office has brought into effect from 1 July its new tax incentives for early stage investors. Early Stage Innovation Company, ESIC, incentives are part of the Turnbull Government’s innovation measures and according to the ATO:

The incentives provide eligible investors, who purchase new shares, with:

• a non-refundable carry forward tax offset equal to 20% of the value of their qualifying investments. This is capped at a maximum tax offset amount of $200,000.
• a modified capital gains tax (CGT) treatment, under which capital gains made or accrued on qualifying shares that are continuously held for at least 12 months and less than ten years are exempt from CGT. Capital losses made or accrued on shares held less than ten years are also disregarded.

Source: https://www.ato.gov.au/Business/Tax-incentives-for-innovation

One of the first to take advantage of the new legislation is Perth-based tech company Secure2Go. Working with wearable and connected technology the company currently has customers and commercial trials across resources, goods transport and people transport nationally.

“We expect the new legislation will help bridge the gap for mainstream investors to participate in the exciting opportunities with the Australian startup community.” said Wes Lawrence, Managing Director of Secure2Go.

The company is currently completing a Series A funding round ahead of an IPO later in the year.

For more information on Secure2Go’s innovative technology visit secure2go.com.

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