Things to know
Complete this section to claim an early stage investor tax offset, if one or both of the following apply:
- you're entitled to the early stage investor tax offset in 2024–25
- you have an amount of unused early stage investor tax offset you carried forward from a previous year.
To qualify for this tax offset you (the investor) and the early stage innovation company need to satisfy the requirements.
For more information on the early stage investor tax offset and the requirements to qualify, see Qualifying for the tax incentives.
If you acquire your investment through a financing arrangement, to ensure you qualify for the offset, see Taxpayer Alert TA 2024/1 Early stage investor tax offset claimed using circular financing arrangements.
The maximum tax offset (including current year and amounts you carried forward from a prior income year) that you, and your affiliates combined, can claim in 2024–25 is $200,000.
If you're a partner in a partnership or a beneficiary of a trust that has invested in an early stage innovation company during 2024–25, you may be entitled to an early stage investor tax offset.
This tax offset is non-refundable, however you can carry it forward if you don't fully utilise it in 2024–25. Any amount of unused tax offset that you're able to carry forward will show on your notice of assessment for the year ended 30 June 2025.
Completing this section
You may need:
- Your notice of assessment or amended notice of assessment for the year ended 30 June 2024 that should show if you have any unused early stage investor tax offset that you carry forward to 2024–25.
- Written notification from a partnership or trustee of a trust of your entitlement to the early stage investor tax offset, if you're a partner in a partnership or a beneficiary of a trust which has invested in an early stage innovation company during 2024–25.
If the partnership or the trustee don't provide written notification, contact them.
We pre-fill your tax return with your Tax offset carried forward from previous year amount, if applicable.
We have shown any current year early stage investor tax offset you have shown in the Managed fund and trust distributions section.
To personalise your tax return to show early stage investor tax offset, at Personalise return select:
- You are claiming tax offsets or adjustments
- Other tax offsets
To show early stage investor tax offset, at Prepare return select 'Add/Edit' at the Offsets banner.
Use the following steps to work out your tax offset and show it at the Early stage investor heading:
- Do you have any early stage investor tax offset carried forward from previous year?
No – go to step 2.
Yes – go to Working out the tax offset you carry forward from previous year. - In 2024–25:
- have you paid for eligible shares in any early stage innovation companies, or
- do you have entitlements to any early stage investor tax offsets as a beneficiary of a trust or a partner in a partnership that invested in an early stage innovation company?
No – go to step 3.
Yes – go to Working out your current year tax offset.
- Work through Worksheet 1 below to work out the amounts to show in myTax.
- Enter the amount from row b in Worksheet 1 at Tax offset carried forward from previous year.
- Are any of your affiliates entitled to the early stage investor tax offset (whether for investments they made in 2024–25 or carry forward from 2023–24)?
No – Enter the amount from row e in Worksheet 1 at Current year tax offset.
Yes – The amount at row e in Worksheet 1 may need to be further reduced if any of your affiliates are entitled to the early stage investor tax offset (whether for investments they made in 2024–25 or carried forward from 2023–24).
The maximum tax offset (including current year and amounts you carry forward from prior income years) that you, and your affiliates combined, can claim in 2024–25 is $200,000.
Enter the outcome at Current year tax offset. - Select Save and continue when you have completed the Offsets section.
|
Row |
Description |
Amount |
|---|---|---|
|
a |
Maximum early stage investor tax offset amount |
$200,000 |
|
b |
Row i from Worksheet 2 |
$ |
|
c |
Subtract row b from row a |
$ |
|
d |
Row m from Worksheet 3 |
$ |
|
e |
If row c is greater than row d, show row d Otherwise show row c |
$ |
Working out the tax offset you carry forward from previous year
Follow these steps to work out the tax offset you carry forward from the previous year.
Step 1: Unused early stage investor tax offset carried forward from the previous year
Show the amount of any unused early stage investor tax offset carried forward from the previous year at row f in Worksheet 2 below. The carried forward amount should be shown on your notice of assessment or amended notice of assessment for the year ended 30 June 2024.
Go to step 2.
Step 2: Unused net exempt income
Unused net exempt income is any net exempt income left after deducting any tax losses of earlier income years from that year's net exempt income.
Exempt income is explained in Amounts that you do not pay tax on.
Do you have any unused net exempt income?
No – go to step 4.
Yes – show the amount of unused net exempt income at row g in Worksheet 2. Go to step 3.
Step 3: Multiply unused net exempt income by 30%
The unused early stage investor tax offset you carried forward from a previous year is reduced by $0.30 for every dollar of unused net exempt income, provided you had taxable income for that year.
Multiply the unused net exempt income by 30%. Show that amount at row h in Worksheet 2. Go to step 4.
Note: If you have unused net exempt income and are unsure how to calculate the early stage investor tax offset carried forward from a previous year, for more information:
- contact us
- use 'Live chat', available within myTax by selecting the 'Live chat' button.
Step 4: Calculate tax offset carried forward from previous year
Subtract row h from row f in Worksheet 2.
This is the amount of unused early stage investor tax offset carried forward from the previous year, reduced by any net exempt income.
Return to step 2 in Completing this section.
|
Row |
Description |
Amount |
|---|---|---|
|
f |
Unused early stage investor tax offset you carried forward from the previous year |
$ |
|
g |
Unused net exempt income |
$ |
|
h |
Multiply row g by 30% |
$ |
|
i |
Subtract row h from row f Show this amount at row b of Worksheet 1 |
$ |
Working out your current year tax offset
Follow these steps to work out your current year tax offset.
Step 1: Total amount of money and non-cash benefits paid, or required to pay, for eligible shares
Show the total amount of any money paid and market value of any non-cash benefits you gave for eligible shares in all early stage innovation companies in 2024–25 at row j in Worksheet 3 below. You need to include any money and non-cash benefits paid, or that you're required to pay to the issuing company.
If you don't meet the requirements of the 'sophisticated investor' test for at least one of your 2024–25 investments in an early stage innovation company, your step 1 amount mustn't exceed $50,000.
If you're not a sophisticated investor and your step 1 amount exceeds $50,000 you can't claim this tax offset.
Go to step 2.
Step 2: Multiply your eligible share investments by 20%
Multiply the amount from step 1 by 20%. Show that amount at row k in Worksheet 3. Go to step 3.
Step 3: Your entitlements to any early stage investor tax offset from a trust or partnership
Show your entitlements to any early stage investor tax offsets as a beneficiary of a trust or a partner in a partnership that has invested in an early stage innovation company during 2024–25 at row l in Worksheet 3.
Don't include amounts you have already shown at the Managed fund and trust distributions section.
Go to step 4.
Step 4: Calculate current year tax offset total
Add row k and row l in Worksheet 3.
Return to step 3 in Completing this section.
|
Row |
Description |
Amount |
|---|---|---|
|
j |
Total amount you paid for eligible shares in early stage innovation companies in 2024–25 |
$ |
|
k |
Multiply row j by 20% |
$ |
|
l |
Entitlements to any early stage investor tax offsets as a beneficiary of a trust or a partner in a partnership that has invested in an early stage innovation company during 2024–25 |
$ |
|
m |
Add row k and row l Show this amount at row d of Worksheet 1 |
$ |