Private ruling: ESIC - eligibility
Date of advice: 9 September 2025
Published: 17 November 2025
Ruling period: Year ending XX/XX/20XX
Date scheme commenced: XX/XX/20XX

Ruling: Q1: 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 (ITAA 1997) for the period from XX/XX/20XX to XX/XX/20XX? | A1: Yes.

Relevant facts and circumstances: 1. The Company is a propriety company incorporated on XX/XX/20XX. 2. The Company's co-founder and director is Individual A who is the inventor of the innovation be commercialised. 3. Individual B and Individual C are co-founders and Directors of the Company and bring their expertise to commercialising the innovation. 4. The Company has no subsidiaries and is not a member of an income tax consolidated group. 5. For the financial year ending XX/XX/20XX, the Company did not incur any expenses, nor did it earn any income. 6. 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. Product development 7. The Company is developing and commercialising the technology. 8. The Company's technology offers the potential to overcome many of the challenges of existing technologies used. 9. The Company has demonstrated that it has taken tangible steps to identify a gap in the market, to create an innovative product to fill the gap in the market and to commercialise the innovation to generate revenue. 10. The Company is 'genuinely focussed on developing new or significantly improved innovations for commercialisation'. High growth potential 11. The Company demonstrates that its innovation has the potential for high growth within a broad addressable market. Scalability 12. The Company's addressable market includes both the Australian market and overseas markets, therefore, there is potential to successfully scale the business. Although revenue projections are not quantifiable at the moment, if the Company is able to capture a small portion of market share over the next 10 years, revenue would be significant. Broader than a local market 13. The Company demonstrates that its innovation has the potential for high growth within a broad addressable market, its ultimate addressable market being both Australian and global markets. The Company, therefore, addresses a broader market than just the local market and is not confined to a local city, area or region. The Company's market can clearly be expanded to a broader market in the future. Competitive advantages 14. The Company has demonstrated the potential for it to have competitive advantage within the market, The company is developing their technology to address a number of discrete markets and is continuing to develop their technology. Information provided 15. You have provided a number of documents containing detailed information in relation to the Company's innovation, including: • Private Binding Ruling Application • Competitor analysis • Financial forecast 16. We have referred to the relevant information within these documents in applying the relevant tests to your circumstances.

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