ESIC Test

Investors who purchase new shares in a startup business may receive a:

non-refundable carry forward tax offset equal to 20% of the amount paid for their qualifying investments.
modified capital gains tax (CGT) treatment, under which capital gains on qualifying shares that are continuously held for at least 12 months and less than ten years may be disregarded.

For an investor to be entitled to these tax incentives, the company the investor is looking to invest in must qualify as an early stage innovation company (ESIC) immediately after the new shares are issued to the investor.

A company to qualify must meet the ESIC test:

Take the ESIC test

Email*

Email Address to receive report
Company Name*
Company Name to conduct test
Self-Assessment*
- I agree that this is a reference only "self-assessment" tool to assess the company's ESIC eligibility at this "Test Time".
Eligibility Test
Incorporation*
ABN
ABN No:
Company Age*
Expenditure
Tax Return*
R&D Credits*
Income for Last Year
Expenditure Last Year
Congratulations the company is ESIC eligible.
Unfortunately the company is not eligible for ESIC tax concessions.
Innovation Test
Test Method*
You will need to apply to the ATO to be assessed under this method.
R&D Expenses
Percent of Expenses*
75 Points Attained for more then 50% of expenses last year on R&D. NOTE: You will need to demonstrate your claim via last year's tax return.
50 Points. Attained for between 15% and 50% of expenses last year on R&D. NOTE: You will need to demonstrate your claim via last year's tax return.
Grants
75 Points. Attained for receiving an Accelerating Commercialisation Grant from AusIndustry. NOTE: You will need to demonstrate your claim with documentation from AusIndustry.
3rd Party Investment
Amount
50 Points. Attained for receiving at least $50,000 from Third Party Investor. NOTE: You will need to demonstrate your claim via a copy of the Share Certificates.
Accelerator
50 Points. Attained for attending or completing an Accelerator course. NOTE: You will need to name the eligible accelerator and when you attended the program.
IP Rights
Age of IP
50 Points Attained for rights to a Patent issued in the last 5 years. NOTE: You will need to demonstrate your claim with patent details and (if required) legal document assigning rights.
25 Points Attained for rights to a Innovation Patent issued in the last 5 years. NOTE: You will need to demonstrate your claim with innovation patent details and (if required) legal document assigning rights.
25 Points Attained for rights to a registered design issued in the last 5 years. NOTE: You will need to demonstrate your claim with details and (if required) legal document assigning rights.
Agreements
25 Points Attained for a co-development agreement with a University or RSP. NOTE: You will need to demonstrate your claim with a signed agreement document.
Name
This field is for validation purposes and should be left unchanged.

Take the ESIC test

Eligibility Test

Unfortunately the company is not eligible for ESIC tax concessions.

Innovation Test

You will need to apply to the ATO to be assessed under this method.

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