Private ruling: Early-stage innovation company eligibility
Date of advice: 30 April 2026
Published: 10 August 2026
Ruling period: Income year ended XX/XX/20XX | Income year ended XX/XX/20XX
Date scheme commenced: XX/XX/20XX

Ruling: Q1: Does the Company satisfy the criteria of an Early Stage Innovation Company (ESIC) under subsection 360-40(1) of the Income Tax Assessment Act 1997 (ITAA 1997) at all times between its incorporation date and XX/XX/20XX? | A1: Yes

Relevant facts and circumstances: Early Stage Test 1. The Company is a proprietary company incorporated on XX/XX/20XX. 2. The Company has no wholly or partly owned subsidiaries. 3. For the 20XX income year, the Company's: (a) total income was $X, and (b) total expenditure was $X. 4. The Company's equity interests are not listed for quotation in the official list of any stock exchange, either in Australia or a foreign country at any time in the period from incorporation to XX/XX/20XX. 5. The 'test time' for determining if the Company is a qualifying ESIC, will be upon the issue of qualifying shares on a particular date or dates on or after XX/XX/20XX, and on or before XX/XX/20XX. Product development 6. The Company is developing a unique platform with technology and the Company is 'genuinely focussed on developing its platform for commercialisation'. High growth potential 7. The Commissioner considers that this condition is satisfied. Scale up the business 8. The Commissioner considers that this condition is satisfied. Broader than local market 9. The Commissioner considers that this condition is satisfied. Competitive advantages 10. The Commissioner considers that this condition is satisfied. Conclusion 11. The Company meets the eligibility criteria of an ESIC under section 360-40 for the period from XX/XX/20XX to XX/XX/20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 360-A | Income Tax Assessment Act 1997 section 360-15 | Income Tax Assessment Act 1997 section 360-40 | Income Tax Assessment Act 1997 subsection 360-40(1)