Private ruling: Early stage investor offset
Date of advice: 11 March 2026
Published: 28 April 2026
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 2020

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 360-30(4) of the ITAA 1997 to allow an extension of time to the trustee for Trust, to provide a written notice of the amount of early stage investor tax offset available to its beneficiaries in relation to the Trust's investment in Company A during the year ended 30 June 20XX? | A1: Yes

Relevant facts and circumstances: The Trust is a discretionary investment trust. In MM YYYY, the Trustee was issued shares in Company A. Company A recently advised the Trustee that it met the requirements of an early stage innovation company (ESIC) as defined in section 360-40 of the ITAA 1997 and has lodged the relevant Australian Taxation Office (ATO) reporting for the trustee's investment in the company during the year ended 30 June 20XX. As soon as the Trustee was advised by Company A of this information, the Trustee started taking steps to claim the early stage investor offset. The Trustee would like an extension to 30 June 20XX to provide a written notice to its beneficiaries, as required by subsection 360-30(4), so that the offset can be claimed by the beneficiaries of the Trust.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 360-30(4) | Income Tax Assessment Act 1997 paragraph 360-30(4)(b)

Reasons for decision: Summary: Subsection 360-30(4) states: (4) The trustee or partnership must give the *member written notice of the determination. The notice: (a) must enable the member to work out the amount of the member's *tax offset by including enough information to enable the member to work out the member's share of the notional tax offset; and (b) must be given to the member within 3 months after the end of the income year, or within such further time as the Commissioner allows. The Trustee did not provide a written notice of determination to any beneficiaries of the Trust within three months after the end of income year ending 30 June 2024. The Trustee was not advised by Company A that the company met the requirements to be an ESIC at the end of the relevant income year. The Trustee was only recently advised by Company A that it met the requirements to be an ESIC. Providing all the conditions within section 360-15 have been met there will be an entitlement to the early stage investor offset. The Commissioner will grant the discretion to extend the period for the Trustee to provide the written notice of determination in accordance with paragraph 360-30(4)(b).