Things to know
Complete this section to claim the early stage investor tax offset if one or both of the following apply:
- you are entitled to the early stage investor tax offset in 2023–24
- you have an amount of unused early stage investor tax offset carried forward from a previous year.
To qualify for this tax offset there are requirements that need to be satisfied by:
- you as the investor, and
- the early stage innovation company.
For more information on the early stage investor tax offset and the requirements to qualify for it, see Qualifying for the tax incentives.
The maximum offset (including current year and carried forward prior year amounts) that you, and your affiliates combined, can claim in 2023–24 is $200,000.
If you are a partner in a partnership or a beneficiary of a trust which has invested in an early stage innovation company during 2023–24, you may be entitled to an early stage investor tax offset.
This tax offset is non-refundable, however you can carry it forward if it is not fully utilised in 2023–24. Any amount of unused tax offset able to be carried forward will be shown on your notice of assessment for the year ended 30 June 2024.
Completing this section
You may need:
- Your notice of assessment or amended notice of assessment for the year ended 30 June 2023 that should show if you have any unused early stage investor tax offset that is carried forward to 2023–24.
- Written notification from a partnership or trustee of a trust to allow you to work out your share of the early stage investor tax offset, if you are a partner in a partnership or a beneficiary of a trust which has invested in an early stage innovation company during 2023–24.
If a written notification has not been provided, contact the partnership or the trustee.
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 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 your tax offset carried forward from previous year. - In 2023–24:
- 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 has 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 determine 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 2023–24 or carried forward from 2022–23)?
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 2023–24 or carried forward from 2022–23).
The maximum offset (including current year and carried forward prior year amounts) that you, and your affiliates combined, can claim in 2023–24 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 your tax offset carried forward from previous year
Step 1
Show the amount of any unused early stage investor tax offset carried forward from a previous year at row f in Worksheet 2 below.
Step 2
Do you have any 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.
For more information, see Amounts that you do not pay tax on.
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
The unused early stage investor tax offset 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.
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
Subtract row h from row f.
Return to step 2 in Completing this section.
Row | Description | Amount |
|---|---|---|
f | Unused early stage investor tax offset carried forward from a 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
Step 1
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 2023–24 at row j in Worksheet 3 below. You need to include any money and non-cash benefits paid, or that you are 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 2023–24 investments in an early stage innovation company, your step 1 amount must not exceed $50,000. If your step 1 amount exceeds $50,000 you can't claim this offset.
Step 2
Multiply the amount from step 1 by 20%. Show that amount at row k in Worksheet 3.
Step 3
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 2023–24 at row l in Worksheet 3.
Don't include amounts you have already shown at the Managed fund and trust distributions section.
Step 4
Add row k and row l.
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 2023–24 | $ |
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 2023–24 | $ |
m | Add row k and row l Show this amount at row d of Worksheet 1 | $ |