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  • 23 Early stage investor

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    M - Early stage investor tax offset

    Show at item 23 the total of the company's early stage investor tax offset.

    To qualify for this tax offset there are requirements that need to be satisfied by the investor and by the early stage innovation company.

    If you are eligible for the early stage investor tax offset as a result of investing in an early stage innovation company during the year

    • Step 1: Work out the total amount you paid for newly issued shares in all qualifying early stage innovation company during the year.    
      • If you do not meet the requirements of a 'sophisticated investor' test under the Corporations Act 2001 for at least one of your investments in an early stage innovation company made during the year, you cannot claim this offset if the investments you made in all early stage innovation companies in an income year exceeds $50,000 in total.
    • Step 2: Multiply the Step 1 amount by 20%
    • Step 3: Identify your entitlements to any early stage investor tax offsets if you are a beneficiary of a trust or a partner in a partnership that has invested in an eligible early stage innovation company during the year.    
      • The trustee of the trust or the partnership will provide you with written notification of any entitlement. If you have not been advised of your entitlement, contact the trustee or partnership.
    • Step 4: Aggregate the amounts at Step 2 and Step 3 and write the total at item 23 label M.    
      • Also include the Step 4 amount at label D Non-refundable carry forward tax offsets in the calculation statement.

    The maximum amount of this offset that you and your affiliates combined are entitled to in an income year is $200,000 (or $10,000 if you do not meet the requirements of a 'sophisticated investor' test and your total investment in all newly issued shares in all qualifying investments in the year does not exceed $50,000).

    For more information on the Early stage investor tax offset and the eligibility requirements, see: Tax incentives for early stage investors.

    Last modified: 02 Oct 2019QC 51220