Home topics news News Startup News Draft legislation to boost fintech startup investment released for comment by treasurer James Harkness November 1, 2017 The Turnbull Government has drafted legislative reforms to support investment in innovative fintech companies by venture capital and angel investors, Treasurer Scott Morrison has announced. Released yesterday for a public consultation period ending Friday, 10 November, the exposure draft of the Treasury Laws Amendment (2017 Measures No. #) Bill 2017 proposes amendments to the Tax Incentive for Early Stage (angel) Investors as well as the Venture Capital Limited Partnership (VCLP) and Early Stage Venture Capital Limited Partnership (ESVCLP) regimes. According to the Treasurer, the amendments will ensure “tax measures… continue to provide generous and effective support to innovative Australian companies” by ensuring investments in fintech businesses are eligible for support under each program. He added, “The proposed amendments highlight the Turnbull Government’s commitment to promoting innovation, by incentivising investors to support innovative, high-growth potential start-ups.” The exposure draft explanatory material , which is also subject to the public consultation period, explains that a restriction on Australia’s fintech sector being more internationally competitive is the fact that venture capital and early stage (angel) investors do not receive concessional tax treatment for investing in fintech startups. “Currently, for the purposes of the venture capital tax concessions, both finance (to the extent it consists of banking, providing capital, leasing, factoring and securitisation) and insurance are ineligible activities,” the document states. “This means there is uncertainty whether investments in companies and