INCOME TAX ASSESSMENT ACT 1997
This subsection applies to a company at a particular time (the test time ) in an income year (the current year ) if:
(a) the company was:
(i) incorporated in Australia within the last 3 income years (the latest being the current year); or
(ii) incorporated in Australia within the last 6 income years (the latest being the current year), and across the last 3 of those income years it and its *100% subsidiaries (if any) incurred total expenses of $1 million or less; or
(iii) registered in the *Australian Business Register within the last 3 income years (the latest being the current year); and
(b) the company and its 100% subsidiaries (if any) incurred total expenses of $1 million or less in the income year before the current year; and
(c) the company and its 100% subsidiaries (if any) had a total assessable income of $200,000 or less in the income year before the current year; and
(d) at the test time, none of the company ' s *equity interests are listed for quotation in the official list of any stock exchange in Australia or a foreign country; and
(e) at the test time, the company has at least 100 points under section 360-45 , or:
(i) the company is genuinely focussed on developing for commercialisation one or more new, or significantly improved, products, processes, services or marketing or organisational methods; and
(ii) the business relating to those products, processes, services or methods has a high growth potential; and
(iii) the company can demonstrate that it has the potential to be able to successfully scale that business; and
(iv) the company can demonstrate that it has the potential to be able to address a broader than local market, including global markets, through that business; and
(v) the company can demonstrate that it has the potential to be able to have competitive advantages for that business.
For the purposes of paragraph (1)(c), disregard any Accelerating Commercialisation Grant under the program administered by the Commonwealth known as the Entrepreneurs ' Programme. 360-40(3)
Subparagraphs (1)(e)(i) to (v) cannot be satisfied for:
(a) a product, process, service or method; or
(b) an improvement to a product, process, service or method;
that is of a kind prescribed by regulations made for the purposes of this subsection.360-40(4)
Subsection (1) does not apply to a company if, before the test time, the company engaged in an activity of a kind prescribed by regulations made for the purposes of this subsection.
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