The Federal Government will be implementing a new ta incentive to encourage investment into new business ventures, expected to begin during 2016 - subject to passing through parliament.

The program based on the successful UK Seed Enterprise Investment Scheme, will target investment into companies which have incorporated in the previous 3 income years, are not listed on the ASX, and have expenditure less than $1 million and income less than $200,000 in the previous income year.

The plan also allows greater venture capital investment in Australia, by introducing a non-refundable tax offset for capital investment in new Early Stage Venture Capital Limited partnerships and increasing the cap on committed capital from $100 million to $200 million.  Rules that limit depreciation deductions for some intangible assets such as patents will also be removed.