Tax Benefits for Early Investments in Australian Startups


In the world of Australian innovation, the government has rolled out special perks to encourage support for early-stage companies. One key guide in this journey is Taxation Determination TD 2023/6. This document helps investors understand what costs count when deciding if a company qualifies as an Early Stage Innovation Company (ESIC). Let’s break down the basics of TD 2023/6, explaining what ‘expenses’ and ‘incurred’ really mean, and offering a simple approach for investors looking to grab these tax perks.

Understanding ESIC Rewards:

The ESIC program aims to boost small Australian innovation companies with big growth potential. To make this happen, the government is offering investors special tax benefits. It’s like a push to get more money flowing into the exciting world of innovation.

Breaking Down TD 2023/6:

TD 2023/6 is like a map for investors exploring the ESIC benefits. Here’s the lowdown on the important parts:

What Counts as ‘Expenses’:

TD 2023/6 makes it clear what costs are considered when deciding if a company is an ESIC. It’s not just about counting dollars; it’s about figuring out the real costs during the early stages of an innovation journey. The document outlines specific rules for what counts, ensuring the evaluation is fair and clear.

Understanding ‘Incurred’:

‘Incurred’ is a big word in the ESIC rules, and TD 2023/6 helps us get what it means in simple terms. It’s about knowing when a cost is spent during the innovation process. Investors need to catch on to when an expense happens to play by the rules and get the benefits they deserve.

Keeping It Right with Compliance:

The compliance approach in TD 2023/6 is like a cheat sheet for investors. By understanding how the people in charge see things, investors can plan their investments smartly. It’s about getting the most out of the benefits while staying on the right side of the rules.


As the curtain rises on the ESIC program, investors have a chance to be part of something big in Australian innovation. Taxation Determination TD 2023/6 acts as a guide, showing how to tax benefits for those willing to invest in the future. By digging into the details of ‘expenses’ and ‘incurred,’ and keeping things compliant, investors can make the most of the ESIC program, helping innovation thrive and boosting the Australian economy.