Investor Incentives
Individual Tax Updates │September 2017
From 1 July 2016, investors who purchase new shares in a qualifying Early Stage Innovation Company (ESIC) may be eligible for tax incentives. Speak with your Accountant to learn how this could affect your tax this Financial Year.
The tax incentives provide eligible investors who purchase new shares in an ESIC with a:
- Non-refundable carry forward tax offset equal to 20% of the amount paid for their qualifying investments. This is capped at a maximum tax offset amount of $200,000 for the investor and their affiliates combined in each income year
- Modified capital gains tax (CGT) treatment, under which capital gains on qualifying shares that are continuously held for at least 12 months and less than 10 years may be disregarded. Capital losses on shares held less than ten years must be disregarded.
More information on qualifying for the tax incentive, the sophisticated investor test and calculating the early stage investor tax offset can be found on the ATO website.
For more information or to schedule an appointment, please contact us below or call us on 1300 627 829.
If you are unsure of your tax obligations or are in need of specialist advice, please speak with your Accountant.
Source: TaxWise 2017
