100-Point Innovation Test

This is an objective test and the simplest way to self-assess whether you qualify as an early stage innovation company (ESIC), when compared to the principles-based test.  Back to Resources.

PointsCriteria
75At least 50% of the company's total expenses for the previous income year are eligible notional deductions for the research and development tax incentive.
75The company has received an Accelerating Commercialisation Grant at any time. The amount of this grant is also excluded from the company's assessable income for the purposes of the early stage test.
50At least 15% but less than 50% of the company's total expenses for the previous income year are eligible notional deductions for the research and development tax incentive.
50The company has completed or is undertaking an eligible accelerator programme that provides time-limited support for entrepreneurs with a start-up business. This support may involve providing mentorship, training, education and access to networks.

The programme must be provided to entrepreneurs that are selected in an open, independent and competitive manner. It is likely that an entity that has been selected through this process would also meet the principles-based test.

The entity providing the programme has to have been providing eligible programmes for at least six months, and the programmes must have been completed by at least one cohort of entrepreneurs.
50One or more third parties have previously paid a total of at least $50,000 for the issue of new shares in the company.

These points are only available if:

✓ the third party was not an associate of the company immediately before it was issued with the shares.
✓ the company issued the third party with the shares at least one day before the test time
✓ the third party did not purchase those shares primarily to assist another entity to become entitled to early stage investor tax incentives

Examples of entities that would be an associate of a company include:

✓ a partner of the company or a partnership in which the company is a partner
✓ a trustee of a trust estate under which the company or associate benefits
✓ another entity (including a person) that, acting alone or with another entity or entities, sufficiently influences the company
✓ an entity (including a person) that, either alone or together with associates, holds a majority voting interest in the company
✓ a second company that is sufficiently influenced by the company or the company's associates
✓ a second company in which a majority voting interest is held by the company or the company's associates.
50A company has enforceable rights on an innovation through either:

✓ a standard patent granted in Australia in the last five years
✓ a plant breeder's right that has been granted in Australia in the last five years
✓ an equivalent intellectual property right granted in another country.

A company that holds a license to intellectual property owned by another party is able to obtain these points.
25A company has enforceable rights on an innovation through either:

✓ an innovation patent granted in Australia in the last five years
✓ design right granted in Australia in the last five years
✓ an equivalent intellectual property right granted in another country.

A company that holds a license to intellectual property owned by another party is able to obtain these points.

These points are only available if the company did not receive 50 points for holding a standard patent, plant breeder's right or equivalent right overseas under the previous criterion.
25The company has a written agreement to co-develop and commercialise an innovation with either:

✓ an institution or body listed in Schedule 1 to the Higher Education Funding Act 1988
✓ an entity registered as a Research Service Provider under section 29A of the Industry Research and Development Act 1986.