Take the following examples, firstly one that's measures up and another that left me wanting.
The first, a company with over $5 million already invested in a tech start-up, who had taken the logical step in capitalising its IP in development of the system and deferring the R&D claim in the tax reconciliation to the year of receipt, all prior to a voluntary audit. The latter, a much more modest start-up who expensed all its development cost (to carryforward losses) and booked the R&D claim on an accruals basis.
On face value, you would expect the earlier company with significant cashflows to struggle on its ATO ruling application, with the latter, smaller business being more likely to qualify.
Well I can confirm the well capitalised company was considered an Early Stage Innovation Company (even with $5 million invested).
All accounted for,