Private ruling: Early-stage innovation company eligibility
Date of advice: 14 May 2026
Published: 27 July 2026
Ruling period: DD MM YYYY to DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Does the Company satisfy the early stage tests under paragraphs 360-40(1)(a)(b)(c) and (d) of the Income Tax Assessment Act 1997 for the period DD MM YYYY to DD MM YYYY? | A1: Yes. | Q2: Does the Company satisfy the principles-based innovation test under subparagraphs 360-40(1)(e)(i)(ii)(iii)(iv) and (v) of the Income Tax Assessment Act 1997 for the period DD MM YYYY to DD MM YYYY? | A2: Yes. | Q3: Does the Company meet the criteria of an early-stage innovation company (ESIC) under subsection 360-40(1) of the Income Tax Assessment Act 1997 for the period DD MM YYYY to DD MM YYYY? | A3: Yes.

Relevant facts and circumstances: Background Facts The Company is a proprietary company incorporated in Australia on DD MM YYYY. The Company's registered office and principal place of business is situated in a state or territory in Australia. The Company has no wholly owned subsidiaries and is not part of an income tax consolidated group. For the income year ended 30 June 20XX, the Company incurred total expenses below $1 million expenditure and had less than $200,000 assessable income. 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. The Company issued new ordinary shares to eligible investors in the financial year ended 30 June 20XX. Product Development The Company is developing a product that will address a gap in a particular industry and provide a new and alternative way of transacting business. The Company listed and described the product's key innovations. These innovations constitute new and significantly improved technology. The Company has completed its design phase, producing a prototype, and is developing its minimum viable product (MVP). The Company detailed other tangible development steps it has completed and its plans for initial MVP deployment in target locations and demographics within Australia. Commercialisation The Company has designed its innovation for commercialisation, with clear plans to generate economic value and revenue for the business. The Company provided its staged roadmap to full commercialisation. The Company is seeking funding to complete product development and commercialise the product. The Company has received acceptance and validation from innovation and startup experts, supporting the Company's genuine focus on commercialisation and prospect of successfully commercialising. The Company's commercialisation strategy involves launching into the Australia market followed by expansion overseas to targeted countries, subject to regulatory approvals. High Growth Potential The Company's business relating to product has high growth potential, evidenced by the size of its assessable market and the need for an innovative solution to fill a gap in the market. The Company provided statistics regarding its total addressable market (TAM), its serviceable addressable market (SAM), and its serviceable obtainable market (SOM) from market research undertaken. The Company explained its vision and how its product will revolutionise the particular industry. The design of the product allows for rapid expansion and high growth potential. The Company's innovation is designed to serve a large national market and is not constrained by local service delivery capacity. Growth will be driven by software adoption without the need for increase in physical infrastructure. Scale up the business The Company demonstrated that it will be capable of scaling up its business to fill its high growth potential. The Company is backed by a highly experienced team and strategic advisory panel spanning the particular industry and technology sector. Key team members have successfully scaled and listed major businesses. The Company plans to grow the business in stages as described. The innovative design of the Company's technology supports replication across multiple jurisdictions with configuration changes rather than fundamental redevelopment, enabling scalable growth over time. The Company provided its revenue and expenses forecast for the next X financial years which displays: • rapid increase in sales and resulting rapid increase in revenue • sustained profitability • incremental market expansion not proportionally increasing operating expenses. Broader than Local Market The Company has the potential to serve a market that is broader than a local city, area or region and its business is capable of being adapted to supply a broader national and global market in the future. While initial deployment is within Australia, the Company's innovation is designed with the capability to be adapted for other comparable global markets, subject to regulatory considerations. Competitive Advantages The Company is developing a platform with characteristics and functionality not currently offered as a single integrated system in the particular market. The Company's analysis of the competitive landscape validates this market positioning and highlights both sustainable differential and cost advantages that will allow the company to outperform its competitors and make it difficult for later entrants. Intellectual Property The Company is the owner of all intellectual property (IP) associated with its innovation. The Company has executed appropriate agreements to protect its IP rights in relation to copyright, trademarks, design, patents and trade secrets in Australia and overseas; and ownership of IP developed within the business. Information provided The Company provided various documents containing detailed information relating to its product including: • Private ruling application dated DD MM YYYY. • Pitch deck, Business Plan, revenue and expenses projections for the next X financial years. • Responses to our Request for Information received DD MM YYYY. We have referred to the information within these documents and other documents provided in applying the relevant tests to the Company's circumstances.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 360-40 | Income Tax Assessment Act 1997 subsection 360-40(1) | Income Tax Assessment Act 1997 paragraph 360-40(1)(e)