KH KWAN

Want to migrate to Australia ? The latest scheme by the Australia government is known as the “ Entrepreneur visa”. Basically this means Entrepreneur Visa is available for entrepreneurs who want to develop or commercialise their innovative ideas in Australia and who have $200,000 in funding from a specified third party. The key here who are these third parties ? They are as follows: Commonwealth Government agency, State or Territory Government, Publicly Funded Research Organisation, Investor registered as an Australian Venture Capital Limited Partnership or Early State Venture Capital Limited Partnership and Specified Higher Education Provider (usually a University). For a list of Investors registered you can refer to https://www.business.gov.au/~/media/Business/ESVCLP/Early-stage-venture-capital-limited-partnerships-list-PDF.ashx?la=en. Note the second part of the list are conditional ESVCLP (ie they have to be able to raise 10–200 mio within 24 months). Its not a particularly long list and some of them are spawn from the same originator. On top of this, the Tax Office also provides some tax relief which can be seen here https://www.ato.gov.au/Business/Tax-incentives-for-innovation/In-detail/Tax-incentives-for-early-stage-investors/
which is aim at ELIGIBLE investors to buy shares in these startups (qho qualified as “ early stage innovation company”. Of keen interest is the “modified capital gains tax (CGT) treatment”, under which capital gains on qualifying shares that are continuously held for at least 12 months and less than ten years may be disregarded. Capital losses on shares held less than ten years must be disregarded. Remember this incentives are for investors and not owners or employees who get nothing.

www.business.gov.au