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.

As Business Advisors in Perth Omnis offers a full range of services designed to improve the running of your business, give you better control and ultimately help you achieve your goals.  So whether you want to achieve business growth, improved profits or just get a better understanding of where your money goes every month we can help. Call us on 08 9380 3555.