Miscellaneous 2018

Early stage innovation companies - A year of learning

Source: Taxation In Australia Journal Article

Published Date: 1 Mar 2018


On 1 July 2016, the government introduced tax incentives for investors who support early stage innovation companies (ESICs). The benefits were aimed to incentivise investors to direct funds towards ESICs through the provision of tax concessions, provided the ESIC satisfies both the early stage limb and the innovation limb " the latter of which can be satisfied by passing the principles-based test or the 100-points test. When the new ESIC law was passed, the authors published an article titled 'Early stage innovation companies " a deeper dive, which examined the newly enacted provisions. A year and a half on, the authors reflect on the effectiveness of the ESIC tax concessions, taking into account the release of six ATO guidelines in relation to ESIC. This article outlines how effectively the ATO has addressed the authors' former concerns about the ambiguity of the law and what has been learnt in applying these provisions over the last 12 months.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Miscellaneous 2018

Share this page