Document ID: chunk:federal_register_of_legislation:C2016A00054:clause:1_1:p1
Version: federal_register_of_legislation:C2016A00054
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/4)
Character Range: 7807–10632

1  After Division 355
Insert:

Division 360—Early stage investors in innovation companies

Table of Subdivisions
360‑A Tax incentives for early stage investors in innovation companies

Subdivision 360‑A—Tax incentives for early stage investors in innovation companies

Guide to Subdivision 360‑A

360‑5  What this Subdivision is about

      You may be entitled to a tax offset if you are, or a trust or partnership of which you are a member is, issued with certain kinds of equity interests in a small Australian company with high‑growth potential that is engaging in innovative activities.
      A modified CGT treatment may also apply to those equity interests.

Table of sections

Operative provisions
360‑10 Object of this Subdivision
360‑15 Entitlement to the tax offset
360‑20 Limited entitlement for certain kinds of investors
360‑25 Amount of the tax offset—general case
360‑30 Amount of the tax offset—members of trusts or partnerships
360‑35 Amount of the tax offset—trustees
360‑40 Early stage innovation companies
360‑45 100 point innovation test
360‑50 Modified CGT treatment
360‑55 Modified CGT treatment—partnerships
360‑60 Modified CGT treatment—not affected by certain roll‑overs
360‑65 Separate modified CGT treatment for roll‑overs about wholly‑owned companies or scrip for scrip roll‑overs

Operative provisions

360‑10  Object of this Subdivision
  The object of this Subdivision is to encourage new investment in small Australian innovation companies with high‑growth potential by providing qualifying investors with a tax offset and a modified CGT treatment.

360‑15  Entitlement to the tax offset

General case
 (1) You are entitled to a *tax offset for an income year if:
 (a) you are none of the following:
 (i) a trust or a partnership;
 (ii) a *widely held company or a *100% subsidiary of a widely held company; and
 (b) at a particular time during the income year, a company issues you with *equity interests that are *shares in the company; and
 (c) subsection 360‑40(1) (about early stage innovation companies) applies to the company immediately after that time; and
 (d) neither you nor the company is an *affiliate of each other at that time; and
 (e) the issue of those shares is not an *acquisition of *ESS interests under an *employee share scheme; and
 (f) immediately after that time, you do not hold more than 30% of the equity interests in the company or in an entity *connected with the company.

Members of trusts or partnerships
 (2) A *member of a trust or partnership at the end of an income year is entitled to a *tax offset for the income year if the trust or partnership would be entitled to a tax offset, under subsection (1), for the income year if the trust or partnership were an individual.

Trustees
 (3) A trustee of a trust is entitled to a *tax offset for an income