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T9 Early stage investor 2017

Complete question T9 to claim the early stage investor tax offset.

Last updated 24 May 2017

Did you invest in an early stage innovation company?

No

Go to T10 Other non-refundable tax offsets 2017 or return to main menu Individual tax return instructions 2017.

Yes

Read below.

You need to know

You may be entitled to claim this tax offset if you invested in a qualifying early stage innovation company in 2016–17.

To qualify for this tax offset there are requirements that need to be satisfied by:

  • you as the investor, and
  • the early stage innovation company.

You may also be entitled to an amount of the tax offset if you are a beneficiary of a trust or a partner in a partnership that has invested in a qualifying early stage innovation company in 2016–17.

The trustee of the trust, or the partnership should provide you with details of your entitlement to the offset arising from those investments. If you have not been advised of your share of the offset, contact your trustee or partnership.

The maximum amount that you can claim for this offset in 2016–17 for all your investments made in 2016–17 is $200,000 (or $10,000 if you do not meet the requirements of the 'sophisticated investor' test under the Corporations Act 2001).

This tax offset is non-refundable, however you can carry it forward if you do not use it fully in 2016–17. Any amount of unused tax offset able to be carried forward will be shown on your notice of assessment for the year ending 30 June 2017.

For more information on the early stage investor tax offset and the requirements to qualify for it, see Qualifying for the tax incentives.

Calculating the offset

Step 1

Work out the total amount you paid for newly issued shares in all qualifying early stage innovation companies in 2016–17.

If you do not meet the requirements of the 'sophisticated investor' test for at least one of your 2016–17 investments in a qualifying early stage innovation company, your step 1 amount must not exceed $50,000. If your step 1 amount exceeds $50,000 you cannot claim this offset.

Step 2

Multiply the amount from step 1 by 20%.

Step 3

Identify your entitlements to any early stage investor tax offsets as a beneficiary of a trust or a partner in a partnership on qualifying investments in an early stage innovation company made in 2016–17. Use the information provided to you by the trustee or partnership for determining your share of the offset.

Step 4

Add together the amounts from step 2 and step 3.

Note: The maximum amount for this offset that can be claimed by you in an income year for all your investments made in the year is $200,000 (or $10,000 if you do not meet the requirements of the 'sophisticated investor' test).

The maximum amount of $200,000, includes your entitlement together with the entitlement of your affiliates for the income year.

Completing this item

Write the result from step 4 at L item T9. Do not show cents.

Where to go next

QC51168