Australia: Venture Capital

Preference shares are a common financing tool used by Australian companies, particularly startups, growth businesses and venture-backed enterprises.

Australia's proposed capital gains tax reforms may inadvertently undermine government efforts to strengthen sovereign defence capability and innovation. As the nation faces increasing global instability and supply chain vulnerabilities, changes to the CGT regime could discourage investment in defence-focused startups precisely when such investment is most critical to national security objectives.

The 2026-27 Federal Budget introduced the most significant capital gains tax reforms in 25 years, replacing the 50% CGT discount with cost base indexation and a 30% minimum tax. Combined with new ASIC instruments on stamp duty and portfolio holdings disclosure, investment fund managers face coordinated disclosure, operational and structural challenges requiring substantial work over the next 12 to 18 months.

Part 1 of this 5 part series provides an overview of raising capital through crowd-sources funding (CSF) in Australia.

Article outlines 3 ways to raise capital: equity financing, crowdfunding and debt financing.

Innovation in technology could make a considerable contribution to the future of the Australian agricultural sector.

The legislation to extend crowdsourced equity based funding legislation to proprietary companies has failed to pass.

A wide variety of grants and funding programs can assist start-ups and businesses develop and commercialise their IP.

The new regime aims to reduce regulatory barriers and compliance costs for businesses trying to raise money through CSF.