Legislation introduced to remove double taxation on digital currencies: What this means for startups
Digital currencies such as Bitcoin and Ethereum will no longer be subject to double taxation if legislation introduced last week into the Federal Parliament is successful. Treasurer Scott Morrison says the proposed change will “further cement Australia’s reputation as a global Fintech centre”. The legislation follows a promise the federal government made in the 2017 Budget, when it pledged to exempt purchases of digital currencies from the goods and services tax (GST) from July 1. The promise followed on from a statement by the Treasurer in March 2016, committing the government to addressing the issue. The legislative changes mean digital currencies, such as Bitcoin and Ethereum will be treated similarly […]
Australian fintechs well placed as incumbents hook up with one-time raiders
On any given day, the collaboration model increasingly embraced by incumbent institutions and fintech companies means that a major bank will be working with 10-20 fintechs to remove clunky processes that are poison to customers. The narrative five years ago was that banks would crumble in the face of marauding fintech invaders, but trust (yes, it’s still there) and stability have proved to be confoundingly difficult adversaries. Business, though, is nothing if not pragmatic, so it’s no surprise that the battlelines in financial services have been redrawn by the ominous appearance of Google, Apple and Amazon on the horizon. The hope is that incumbency, spiced with a bit of fintech […]
Macquarie has beaten the Big Four to ‘open banking’, which lets customers offer their data to fintech startups
Fintech startups and smaller financial services providers will be able to access data from Macquarie – with customer consent – in a pioneering arrangement known as “open banking” to let them build applications and services around the bank. Open banking allows customers to control whether their data can be passed onto third parties with accounting software, budgeting tools and fintech apps. The idea is that it opens up the market to smaller players and gives customers more choice on financial services. While the government kicked off an independent review on open banking in July, Macquarie has taken the initiative in letting client data flow electronically to third parties through application […]
Evari’s success is all about having its head in the cloud
Australian business insurance is about to be turned on its head with Insurtech, Evari, set to create waves with its integrated, online insurance platform that makes obtaining and managing insurance quick and easy for small business. Evari’s cloud-based insurance platform is the first of its kind in the world, with no other provider offering fully digital, tailored insurance focussed at the small business sector, starting with cafes, restaurants and small retailers. Evari CEO, Mr Daniel Fogarty, says the insurance platform is a win-win for small business. ‘By integrating the insurance platform with a business’s cloud accounting software, we are alleviating the pain points with regard to how they obtain their […]
World’s central banks can’t ignore the Bitcoin boom, BIS says
The world’s central banks can’t sit back and ignore the growth in cryptocurrencies as it could pose a risk to the stability of the financial system, according to the Bank for International Settlements. It said central banks will need to figure out whether to issue a digital currency and what its attributes should be, though the decision is most pressing in countries like Sweden where cash use is dwindling. Institutions need to take into account of not only privacy issues and efficiency gains in payment systems, but also economic, financial and monetary policy repercussions, the BIS said in its Quarterly Review. The analysis comes at the end of a rough […]
Equity crowdfunding a slow burn, advisers say
The legalisation of equity crowdfunding has met with enthusiasm from those hoping to raise money with it, but financial planners say it will be years before it is taken seriously by investors. Leading advisers contacted by The Australian Financial Review said no clients had approached them in relation to the new crowdsourced equity funding legislation, which was introduced by Treasurer Scott Morrison on Thursday. With Industry Minister Arthur Sinodinos set to open The Australian Financial Review Innovation Summit in Sydney on Tuesday, the government is hoping equity crowdfunding will help bring start-ups and innovation closer to the average Australian, and boost support for the “ideas boom” agenda blamed for nearly […]
KKR spices up Pepper bid to whet investor appetite
The Kohlberg Kravis Robert team behind the $650 million bid for Pepper Group is working overtime to get shareholders on side, with the transaction not a done deal. The private equity giant is preparing a scheme booklet that will be sent to shareholders shortly to press on with its $3.60 a share offer. It is also prepared to offer holders shares in the KKR-controlled company making the bid. KKR beat out major rivals such as Bain and JC Flowers in July to land in the box seat to gain control of the major non-conforming lending business, which has been through a recent resurgence. Perpetual emerged as an early stumbling block […]
Consumers and businesses win in private company equity crowdfunding bill changes
FinTech Australia has welcomed significant changes to draft legislation allowing private companies to crowdfund equity, which will ensure investors are protected while at the same time delivering reduced costs and red tape for companies. The draft crowdfunding legislation was introduced into the Australian Parliament today. The legislation is expected to provide a new fund-raising tool accessible by hundreds of thousands of Australian businesses, who will be able to crowdsource up to $5 million a year from retail investors, capped at $10,000 per retail investor, in return for equity in their company. “We’re pleased to see the recent rapid progress in the development of this draft legislation, and in particular the […]
