New benefits for early-stage investors
High net worth investors and early-stage companies in Australia are eligible for funding and new tax incentives of up to $200,000 a year through the Early Stage Innovation Companies (ESIC) Hub — a new online platform aimed at boosting early-stage investment.
ESIC Hub is the first platform of this type in Australia aimed specifically at HNW investors, according to founder, Stephen Crowe, who said capital had recently begun to shift towards ESIC, such as those eligible to use the platform.
"These new incentives mean early-stage companies wanting capital must tick the right boxes in terms of their structure and investors must fund early-stage companies with their eyes wide open," he said.
Self-managed super funds (SMSFs) are also eligible, with the platform also open to non-Australian residents. Investors who do not fall into the HNW category cannot invest more than $50,000 in a qualifying ESIC within one income year to be eligible for the tax benefits.
Crowe said that in order to qualify for tax savings, investors need to have obtained a qualifying ESIC certificate issued by a qualified, independent tax expert at the initial time of their investment.
AUTHOR
Hope William-Smith
Recommended for you
The possibility of a private credit ETF is looking unlikely for now with US vehicles seeing limited uptake, according to commentators, but fixed income alternatives exist that can provide investors with a similar return.
Ahead of the approaching end of the financial year, State Street has shared five tips for advisers who are using ETFs in their client portfolios.
The use of active ETFs in model portfolios by financial advisers is a key factor in the growth of the products for iShares, according to BlackRock.
Global asset manager BlackRock has identified bringing private markets to the wealth channel as a key business area for the firm that could generate US$500 million in revenue in the future.
