ATO recognises fintech start-up Gobbill as Early Stage Innovation Company
The Australian Taxation Office has ruled that technology start-up company Gobbill satisfies the requirements to be an Early Stage Innovation Company (ESIC).
Gobbill is a new digital service to automate and centralise all bill payments, giving users a streamlined solution offering greater security and increased control of their finances. The start-up is sponsored by Microsoft’s BizSpark program and is also a partner of Stay Safe Online, a Commonwealth initiative to protect Australians from cyber related crimes. New users can sign up for a free account at gobbill.com.au
The ATO ruling states, “Gobbill’s email bill innovation is the first holistic product that provides end-to-end processing using a digital service platform that includes the detection of fraudulent bills… It has been identified as having a wider global addressable market.”
“We are very pleased to receive this positive ruling from the tax office,” says Gobbill co-founder Shendon Ewans, “Our experience dealing with the ATO for this ruling has been very positive. They seem to be supportive of innovation and entrepreneurship for the Australian start-up eco-system.”
Although ESIC was introduced in the 2016 Budget, many investors and startups are unclear of their eligibility for tax benefits. “The ESIC rules, whilst offering major incentives to start-ups and investors alike are complex.” says EY’s R&D and Technology Incentives Partner Mark Chan. “Given this complexity and the ongoing compliance requirements, startups and investors should obtain legal and tax advice to ensure they are applying the rules correctly.”
Australian start-ups and investors interested about the tax incentives for investing in early stage innovation companies can refer to ATO’s website “Tax incentives for early stage investors” or contact their legal and tax advisors.