Tax incentives for early stage investors
Liz Gibbs • September 10, 2024

Tax incentives for early stage investors

The ATO is reminding investors who purchased new shares in a qualifying 'early stage innovation company' ('ESIC') that they may be eligible for tax incentives.


These 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 eligible investments – this is capped at a maximum tax offset amount of $200,000 for the investor and their affiliates combined in each income year; and
  • 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 10 years must be disregarded.


The maximum tax offset cap of $200,000 does not limit the shares that qualify for the modified CGT treatment.


Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.


Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation. 


We are moving
By Liz Gibbs June 9, 2026
RGA Business & Tax Accountants is relocating to a new Brendale head office from 15 June 2026, with Samford appointments continuing.
We have some exciting news to share.
By Liz Gibbs June 9, 2026
After 34 years, RGA has simply outgrown our Samford office, and we are expanding. From 15 June 2026, our new head office will be located at Suite 5, 253 Leitchs Road, Brendale 4500— a larger, modern space that better reflects where the practice is headed.
tax planning
By Liz Gibbs June 7, 2026
Small business owners with turnover under $10M can reduce their tax bill with the right planning. Explore the top SBE strategies to act on before 30 June 2026.
More Posts