The federal government is close to adopting new capital gains tax breaks for investors in start-up businesses as one of a suite of measures in its new innovation policy, which is likely to be released before the mid-year budget update in mid-December.

Prime Minister Malcolm Turnbull has stressed the need for a more "agile" economy since taking office and the innovation statement, which is being put together by his office and those of Innovation Minister Christopher Pyne and Treasurer Scott Morrison, could be released as soon as the end of November, ahead of the promised Christmas deadline.

Innovation Minister Christopher Pyne: "Hopefully, a game changer." Credit:Melissa Adams

In addition to tax breaks for so-called "angel" investors in start-up businesses, which reward risk, changes are also being considered that would reduce reporting requirements for employee share-scheme arrangements, as are changes to government information and communications technology (ICT) procurement policy to encourage Australian tech companies to tender for government business.

The innovation statement will draw heavily on sections of the green paper on tax reform, which is largely completed but has not yet been released because of the leadership change.