Private ruling: Eligible accelerator program
Date of advice: 11 February 2026
Published: 30 March 2026
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Does the program delivered by the Company meet the requirements of an eligible accelerator program for the purposes of item 4 of the table in subsection 360-45(1) of the Income Tax Assessment Act 1997 ? | A1: Yes.

Relevant facts and circumstances: 1. The Company was founded in 20XX and has provided the program to start-up companies since 20XX. 2. Entry into the program is based on a competitive application process and decided by a merit-based screening process. 3. The program is intensive and structured and runs for a specified period. Participants receive time-limited support in the form of training, mentoring, education and access to professional service providers and a broad range of networks. 4. Mentorship from skilled and experienced professionals is provided to participants throughout the duration of the program. 5. Topics covered in the program are tailored to the needs of start-ups and designed to help them with the venture process including translating their innovation into a successful business, identifying customer segments and securing resources. 6. The Company's selection process is highly competitive. The selection of startups is a merit-based screening process. 7. All successful applicants into the program are awarded a partial scholarship. 8. The program is cohort based, with the cohort commencing the program together and graduating together at the end of the program. 9. Since its inception, the Company has been providing the program for entrepreneurs, and the program has been completed by a number of cohorts comprising groups of entrepreneurs. 10. Seed funding may be provided to participating start-ups.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 360-A | Income Tax Assessment Act 1997 section 360-40 | Income Tax Assessment Act 1997 section 360-45

Reasons for decision: Summary: All legislative references are to the Income Tax Assessment Act 1997 . 1. Under the 100-point innovation test used to determine if a company qualifies as an early stage innovation company (ESIC) in section 360-40, 50 points are available if a company has completed or is undertaking an eligible accelerator program (item 4 of the table in subsection 360-45(1)). 2. The requirements of item 4 are that, at the test time: a) the company has completed or is undertaking an accelerator program that: i. provides time-limited support for entrepreneurs with start-up businesses, and ii. is provided to entrepreneurs that are selected in an open, independent and competitive manner, and b) the entity providing that program has been providing that, or other accelerator programs for entrepreneurs, for at least 6 months, and c) such programs have been completed by at least one cohort of entrepreneurs. 3. Essentially, an accelerator is a type of organisation that assists new ventures by providing accelerator programs. They may be either a for-profit or a not-for-profit (NFP) organisation. 4. Accelerator programs are designed to help cohorts of new ventures with the venture process which includes defining and building their initial products, identifying promising customer segments and securing resources (both capital and employees). The programs usually provide a small amount of seed capital and working space. They offer significant networking, educational and mentorship opportunities with both peer ventures and mentors who may be successful entrepreneurs, program graduates, venture capitalists, angel investors, or corporate executives. 5. Accelerator programs are run on a fixed and limited duration, typically running for 3 to 6 months. This duration is a guide only and not a determinative factor. In the initial stages, the structure and content of the program is likely to be common across the cohort, before diversifying to a more customised and unstructured format tailored to the needs of the individual start-ups. Direct contact with the cohort varies, although between 2 and 10 hours per week is generally the norm. 6. It is not sufficient for a program to simply meet the accepted definition of an accelerator program in order for startups that undertake the program to be eligible for 50 points. The program must also be an eligible accelerator program, as per Item 4 of the table in subsection 360-45(1). 7. The Explanatory Memorandum (EM) to Tax Laws Amendment (Tax Incentives for Innovation) Bill 2016 provides guidance on what is considered an eligible accelerator program for the purposes of item 4 of the table in subsection 360-45(1), stating at paragraph 1.95: An eligible accelerator programme is a programme that provides time-limited support for start-ups, for which an open, independent and competitive application process is required for entry, provided the entity running that programmehas been operating for at least a six month period and has provided a complete programme of this kind to at least one cohort of entrepreneurs. Accelerator programmes that cannot provide value adding support (mentorship, training, education and networks) to the accepted companies or have had no successful companies coming through the programme are unlikely to be effective accelerator programmes. Accelerator program - generally accepted meaning 8. Accelerator programs have been identified as generally having 5 defining, partially interdependent features, being: seed funding; cohort based entry and exit; co-location; a structured program; and mentoring. 9. It is not essential for an entity to precisely meet all 5 criteria to be considered an accelerator. The criteria are intended as a guide only. Consideration will involve a weighing of the features on a case by case basis. Eligible Accelerator program 10. The EM guidance and item 4 contain 5 factors that an accelerator program must satisfy to be considered an eligible accelerator program: • a selection process is undertaken in which participants are selected in an open, independent and competitive manner (merit-based screening process) the company must complete the program • the program provides time-limited support to participants • the program provider has been providing the program (or other accelerator programs) for entrepreneurs, for at least 6 months, and • at least one cohort of entrepreneurs has completed the program (or other accelerator programs) offered by the program provider. | Detailed Reasoning - Application to your circumstances: 11. For the purposes of this ruling the program must satisfy two overarching requirements: • it is an accelerator program in accordance with the generally accepted meaning of accelerator program; and • it is an eligible accelerator program in accordance with item 4 of the table in subsection 360-45(1). | Detailed Reasoning - Accelerator program - generally accepted meaning: 12. Weighing the 5 features that accelerator programs generally have against the program: Seed funding 13. Seed funding may be provided to participating start-ups in some circumstances. The Company does not however provide seed funding in exchange for equity in the participating company. Successful applicants are awarded partial scholarships provided by the Company to participate in the program. Cohort based entry and exit 14. The program is cohort-based with the cohort commencing together and graduating together at the end of the program. Co-location 15. Co-location is available in particular circumstances via a competitive application process. Structured program 16. The program runs between a fixed start and end date, culminating in a pitch presentation and graduation. 17. The topics covered in the program are tailored to the needs of start-ups and designed to help them with the venture process including translating their innovation into a successful business, identifying customer segments and securing resources. Mentoring 18. Mentorship from skilled and experienced professionals is provided to participants throughout the duration of the program. Conclusion - generally accepted meaning of accelerator program 19. After weighing the 5 features, it is concluded that the program is an accelerator program under the generally accepted meaning of an accelerator program. | Detailed Reasoning - Eligible accelerator program: 20. Each of the 5 factors that an accelerator program must satisfy to be considered an eligible accelerator program in accordance with item 4 of the table in subsection 360 - 45(1) will be examined in turn. A merit-based screening process 21. Entry into the program is based on a competitive application process. 22. The Company's selection process is not one that offers entry based on payment of a fee. 23. The Company's selection process is highly competitive and open to any applicant. The selection of startups is a merit-based screening process. The company must complete the program 24. Application to the program is open to early - stage start - up companies and companies graduate on completion of the modules. 25. Should any instances occur where an individual alone (and not the company) graduates on completion of the program, the requirement that the company has completed or is undertaking the accelerator program may not be met. Time-limited support 26. An eligible accelerator program must provide time-limited support for entrepreneurs with start-up businesses. The limited duration is the characteristic that most clearly defines accelerator programs. 27. Generally, time limited support will mean support provided in a program running for 3 to 6 months. This duration is considered indicative only and is designed to provide guidance rather than be a definitive rule. 28. The program is an intensive and structured program that runs from the start date, culminating on a set graduation date. Support is provided to participants for the duration of the program. Six month minimum period 29. The accelerator must have been providing accelerator programs for a minimum of 6 months at the test time (when the potential ESIC issues shares to the investor). This is not limited to the particular program being considered under the 100-point innovation test but can include any accelerator program. 30. The Company has been running accelerator programs to start-ups for several years. Prior completion by a cohort of entrepreneurs 31. To qualify as an eligible accelerator program, at least one cohort of entrepreneurs must have completed either that particular program, or another program offered by the accelerator. The term 'cohort' refers to a group or batch and is not merely one or two entrepreneurs. 32. The program has been completed by XX cohorts comprising groups of entrepreneurs. Conclusion - eligible accelerator program 33. The 5 factors in item 4 of the table in subsection 360-45(1) that an accelerator program must satisfy to be considered an eligible accelerator program are satisfied in respect of the program. | Detailed Reasoning - Overall conclusion: 34. The program is an accelerator program according to the generally accepted meaning. In addition, the program meets the requirements of an eligible accelerator program set down in item 4 of the table in subsection 360-45(1).