Private ruling: Early-stage innovation company eligibility
Date of advice: 16 October 2025
Published: 1 December 2025
Ruling period: DD MM YYYY to DD MM YYYY
Date scheme commenced: DD MM YYYY

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 for the period DD MM YYYY to DD MM YYYY? | A1: Yes.

Relevant facts and circumstances: Background Facts 1. The Company is an Australian proprietary company incorporated by the Australian Securities & Investment Commission (ASIC) and registered in the Australian Business Register (ABR) on DD MM YYYY. 2. Company's principal place of business is situated in a state or territory in Australia. 3. The Director and founding shareholder of the Company is Person X. 4. The Company is not part of an income tax consolidated group and does not have any wholly owned subsidiaries. 5. For the financial year ending 30 June 20XX, the Company had less than $1 million in expenditure and had less than $200,000 assessable 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. 7. The Company will issue new ordinary class shares to investors. 8. The Company is developing its own Intellectual Property (IP) and owns the rights to all IP associated with its innovation/product. Product Development 9. The Company described the product's key innovations. 11. The Company provided its product development roadmap. 12. The Company has introduced an initial version of the product to the marketplace. 13. The Company advised when it expects to generate revenue from the product. Commercialisation 14. The Company was created to commercialise innovative technologies to provide companies and organisations with productivity gains. 15. The Company provided evidence to support that their intent and focus is on developing their product for commercialisation. High Growth Potential 16. The Company is at the forefront of the latest trend in the technology landscape. 17. TheCompany cited market research findings relevant to the growth of the particular market. 18. The Company described how its business relating to the product has high growth potential and its ability to expand to meet demand. 19. The Company provided its financial forecast for the next 5 financial years showing the increase in revenue for the company generated by the product. Scale up the business 20. The Company has the potential to successfully scale its business to fill its high growth potential. 21. The Company deliberately chose XX and XX as partners so that its product is made available to hundreds of thousands of users. 22. The company has focussed on a sales strategy that will create scale very quickly. 23. The Company has determined its pricing strategy for their product and forecast revenue for the company. 24. The Company's product is entirely scalable. 25. Products are able to be added to the platform to meet customer needs. 26. The Company provided specific sales verticals where its product will be able to effectively deliver productivity gains. Broader than Local Market 27. Being a technology company, the Company has access to a global footprint and has technologies that are applicable to most OECD countries as well as countries of the developing world. 28. The target market in Australia and overseas are largely similar in their policies and practices - areas that the Company's software suite can support and enable. 29. The Company outlined global trends that will be supported by its product and that will drive growth. 30. The Company described why and how it is capable of supplying global markets. Competitive Advantages 31. The development of the Company's innovative technology has created significant competitive advantages that render it uniquely capable to complete in the particular market. 32. The Company provided findings from its competitor analysis. 33. The Company detailed how it will outperform its competitors because of both differential and cost advantages its product provides. Information provided: 1. You provided documents containing detailed information in relation to the Company's product including: • Private ruling application dated DD MM YYYY and accompanying submission. • Your responses received on DD MM YYYY to our Request for further information. 2. 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 | Income Tax Assessment Act 1997 section 360-45