ESIC Hub In The News
In The News
Here are some articles that have featured ESIC Hub. Click on the links below to view the articles.
Investing in start-ups and early stage ventures has always been risky but the federal government’s new tax regime has at least made it more attractive. In 2017 it is an area of investing that may get much more attention now that superannuation tax breaks have been crimped. Read more
With new tax incentives in place since 1 July 2016 for sophisticated investors in early-stage start-ups, the onus is on high-net-worth individuals to determine whether they qualify for the tax breaks, says an industry consultant.
One firm looking to capitalise on the new tax incentives is ESIC Hub, which describes itself as an “online platform for high-net-worth investors and early-stage companies seeking to secure hundreds of thousands of dollars in new tax relief and funding”.
ESIC Hub founder Stephen Crowe predicted capital will start to shift to ESICs as an investment vehicle of choice for entrepreneurs, innovators, researchers and investors as a result of the new tax incentives. Read more.
A new online platform – ESIC Hub – is the first in Australia for high net worth investors and early-stage companies seeking to secure hundreds of thousands of dollars in new tax relief and funding.
From this month, high net worth and sophisticated investors, including SMSFs, are eligible for new tax incentives of up to $200,000 a year when they invest in an early-stage investment. Read more.
Following the introduction of new tax incentives, this month has seen the launch of an online platform designed to connect early-stage start-ups with high-net-worth investors.
ESIC Hub said in a statement that its platform can help these companies and investors “avoid time-wasting” and take advantage of the new tax rules.
Tax breaks for earlystage investors arrive
At the start of July, significant concessional tax treatments became available for investors in “earlystage innovation companies”, or ESICs. It followed the unanimous passing of the relevant legislation through both houses of Parliament immediately prior to the recent Federal election being called.
The concessions include a 20 per cent tax offset on investment, capped at $200,000 per investor, per year, and a 10-year capital gains tax exemption for profits on equity investments held for at least 12 months. Read more
Early Stage Innovation Company investor tax breaks misunderstood by founders, investors
The Government’s generous tax breaks for investors in innovative startups appear to be poorly understood, with many founders unaware they exist and many investors insisting on private rulings from the Australian Tax Office in what was designed as a self-assessment system.
Under laws which came in to force on July 1, 2016, investors in a qualifying ‘early stage innovation company’ (ESIC) are entitled to an upfront 20 percent non-refundable tax offset (capped at $200,000 per investor per year for ‘sophisticated investors’ and $50,000 for other investors), as well as a 10 year capital gains tax exemption for investments held at least 12 months.
The incentives, costed at $104 million over four years in the Government’s National Innovation & Science Agenda in 2015, were hailed at the time as “the most generous in the world” by Alex McCauley, the head of startup peak body StartupAUS. Yet it seems many of his constituents didn’t get the memo.