The Abbott government has announced it will streamline business registration processes as part of Treasurer Joe Hockey's second budget and allow start-ups to immediately deduct professional costs, such as legal and accounting advice, associated with setting up a new business.
It will also make it easier for small businesses to crowd-source funds by providing $7.8 million to the Australian Securities and Investments Commission to allow it to simplify reporting and disclosure requirements.
Meanwhile, start-ups will be able to offer employees shares in their company, without subjecting them to taxes prematurely.
Under current laws, employees have to pay taxes on any shares or options they receive, even if they haven't received any money from them.
But the changes mean employees will not have to pay tax until the shares are sold.
"Unlike the old system, under the old government, employees won't have to pay tax on their shares until they actually receive a financial benefit from those shares," Mr Hockey said.
Start-up businesses have argued employee share schemes are necessary for start-ups to compete with major firms and attract key staffers like app developers.
What's in the budget for start-ups:
* Able to immediately deduct cost of establishing new business
* Streamlined business registration
* Tax concessions for employee share schemes
* Fewer obstacles to crowd-sourced funding
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