We are happy to say that startup companies have emerged as big winners from the reveal of the 2016 budget. Scott Morrison’s 2016 budget encourages new investments and start up plans through tax cuts and incentives for small and medium sized businesses.
The government has also accepted Fintech Australia’s proposal of the creation of a ‘regulatory sandbox’. A 'regulatory sandbox' is a scheme developed by the government and Australian Securities & Investments Commission to encourage and allow the testing of products, changes to crowd funding legislation and it will provide easier access to venture capital funding. A consultation paper's just been released by ASIC and we'll be looking through that closely.
The sandbox scheme will enable the testing of startups products in the market with a limited number of retail clients for up to 6 months in a protected environment. This scheme is a great opportunity for entrepreneurs to focus on developing their business ideas and products without having to go through governing hurdles including the reduced need of licenses and legal requirements.
Many startups can take years to develop their concepts, and the new budget shows that the government acknowledges that the fintech space is changing rapidly and that startups need to be given support to develop the space. Now the opportunities in the startup space are bigger than ever!
We look forward to helping our startup and fintech companies grow. Let us know if you want to know more.
The team at Motus Legal