NSW is now even better for small businesses and startups

1 June 2015

Budget announcements image

Proposed investment visa and national budget changes will make NSW even more attractive to startups and smaller companies.

Visa changes

Significant investor visa applicants must invest $5 million in Australian companies. The first proposed change is that a major share of this must be invested in funds that support early-stage and smaller companies.

Specifically, the Australian Government's new framework will require at least $500,000 to be invested in early stage and venture capital funds. A further $1.5 million must be allocated to venture capital or other fund managers that support small and micro-cap.

Federal budget changes

The Australian Government's latest budget was unveiled in mid-May and includes measures that are likely to benefit small businesses and startups in NSW:

  • The Australian Securities and Investments Commission will develop a new regulatory framework for crowdsourced equity funding that should make it easier for businesses to gain funding through websites such as GoFundMe, Indiegogo and VentureCrowd.
  • From 1 April 2015, businesses with annual turnover of less than $2 million will no longer have to pay fringe benefits tax on portable electronic devices (like smartphones and tablet PCs) that are purchased for work-related purposes.
  • From 1 July 2015, minor amendments to employee share schemes will make it easier for startups to attract and retain key employees.
  • startups and smaller companies.

For more information, visit Australian Government budget announcements.