Trouble is, the enactment of the measures runs counter logical on occasion, for example;
Right now subparagraph 360-40(1)(a)(ii), regarding the early stage test should be read as, - the last 3 income years will include the years ending 30 June 2017, 2016 and 2015
- the last 6 income years will include the years ending 30 June 2017, 2016, 2015, 2014, 2013 and 2012.
Double take intended,
So this means you need to guess that the 2017 year total expenditure will be under the $1,000,000 threshold before making the investment.
It might seem pretty easy with a brand new start-up, but what happens where pre seed was 500k and the current ESIC seed round is 800k? Is the company going to spend most of your 800k, on top of an earlier 500k during the year and invalidate your tax concession, simply because of raising money!
So your probably thinking that's nuts, well it is, and the ATO agree its not perfect, yet, it is the law of the land at present so don't expect any concession, or a blind eye turned. These numbers are black and white upon lodgement of next years company tax return!