Australia: Legislation aimed at supporting businesses and start-ups introduced to Parliament
Legislation would establish innovative business capital gains tax concession, simplify R&D tax incentive, and modernize venture capital tax incentives.
The government introduced its fourth tranche of tax reform legislation to Parliament—Treasury Laws Amendment (Tax Reform No. 4) Bill 2026, which includes the following proposals aimed at supporting businesses and start‑ups:
- Establish innovative business capital gains tax (CGT) concession to provide investors in innovative start-up companies with access to a 50% capital gains tax discount
- Simplify and refine R&D tax incentive
- Modernize venture capital tax incentives
The bill also contains the following measures announced in the 2026-27 budget:
- Enable taxpayers to choose monthly pay as you go (PAYG) instalments and allow the Commissioner of Taxation to determine that an entity with a history of non-compliance with taxation law obligations must pay PAYG instalments monthly
- Phase in changes to the fringe benefit tax treatment of eligible electric cars