Venture Capital Tax Reforms in Australia and New Zealand

New Zealand Journal of Taxation Law and Policy, Vol. 11, No. 2, 2005

U of Melbourne Legal Studies Research Paper No. 139

Posted: 25 Jan 2006

See all articles by Miranda Stewart

Miranda Stewart

University of Melbourne - Law School; Australian National University (ANU) - Crawford School of Public Policy

Abstract

Australia and New Zealand have recently enacted tax and entity reforms aimed at increasing venture capital investment. This article examines the purpose and effect of these new measures in light of policy goals for subsidising venture capital and reveals the specific kind of venture capital investment sought to be subsidised by these reforms, one based on the dominant US model of private venture capital funds. The new rules will tend to favour later stage capitalisation of new enterprises and will tend to reward fund managers rather than directly rewarding the original developers and entrepreneurs in respect of intellectual property. The article discusses some significant differences between the Australian and New Zealand regimes and considers whether further, and differently targeted, reforms are possible or necessary to assist new innovative enterprises in Australia and New Zealand.

Keywords: venture capital, reform, Australia, New Zealand, subsidy, capitalisation, fund managers, intellectual property, innovative

JEL Classification: K00, K11, K34, K22

Suggested Citation

Stewart, Miranda, Venture Capital Tax Reforms in Australia and New Zealand. New Zealand Journal of Taxation Law and Policy, Vol. 11, No. 2, 2005, U of Melbourne Legal Studies Research Paper No. 139, Available at SSRN: https://ssrn.com/abstract=877034

Miranda Stewart (Contact Author)

University of Melbourne - Law School ( email )

Melbourne, Victoria 3010
Australia
+61 3 8344 6544 (Phone)

Australian National University (ANU) - Crawford School of Public Policy ( email )

7 Liversidge Street
Lennox Crossing
Canberra, ACT 0200
Australia

HOME PAGE: http://https://crawford.anu.edu.au/people/academic/miranda-stewart

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