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About the esi worksheet

This worksheet:

• records the details of your investments in an early stage innovation company (ESIC) and
• calculates your entitlement to the Early early stage investment tax offset

The links at the foot of this page take you to the help for each return type.

What is the esi tax incentive?

From 1 July 2016, if you invest in an ESIC, you may be eligible for a non-refundable carried forward tax offset and modified capital gains tax (CGT) treatment.

See Tax incentives for innovation and Tax incentives for early stage investors.

You'll find it in the following returns:

• Company: item 23: Early stage investor tax offset—labels M and R
• Fund and Self-managed superannuation fund: Calculation statement—labels D3 and D4
• Individual: item T9: Early stage investor tax offset—labels L and O
• Partnership: item 51—MYOB field: Quick access to the Early stage investor tax offset
• Trust: item 52: Non-refundable carry forward tax offsets: Early stage investor tax offset—label I

on the ATO website.

What do you need to qualify?

• You must have purchased new shares in a company that meets the requirements of an ESIC, immediately after the shares are issued
• The shares must have been Shares issued on or after 1 July 2016
• You must be a sophisticated investor.

You can record the details of and store more than one ESIC acquisition.

Once, you've entered the details, we'll calculate the offset and include any allowable amount in the F4 estimate, together with the details of any excess esi that the taxpayer will hold available for use for use in a future year.

What is a sophisticated investor?

See Tax incentives for early stage investors.

A sophisticated investor is prescribed by the Corporations Regulations 2001. Such an investor must demonstrate that they have had a gross annual income of $250,000 or more in each of the previous two years, or have net assets of at least $2.5 million.

You can do this if:

• A qualified accountant issued you hold a certificate issued by a qualified accountant confirming that confirms you meet then met the asset and income requirements described above, and the certificate is provided . The certificate date should be no more than six months prior to the qualifying shares being offered to you.
• you You have paid at least $500,000 for the qualifying shares (either as a single offer or including any amounts you have previously have paid for shares of the same class that you hold in the same company)
• you are offered A financial services licensee has offered you the qualifying shares through a financial services licensee who is satisfied . The licensee must check that you have previous investment experience, and you . You also have to sign a written acknowledgement that the licensee hasn't given you a disclosure document relating to the offer.
• you You meet the requirements of being a professional investor under the Corporations Act 2001 (for example: , a financial services licensee)
• you You have or control gross assets of at least $10 million (including any assets held by an associate or a trust that you manage.

Claiming the ESI offset

Once, When you've entered the details in the worksheet, we'll calculate the offset and include any allowable amount in the F4 estimate. We'll also print a summary of how the offset was applied and any excess to carry forward at the end of the year.

You must keep a record of this amount so that you remember to include it in the following year's return.

You can have more than one acquisition transaction in the worksheet.

The worksheet also contains the details of any distributions of ESIC received from a partnership or trust that are entered in the Distributions from partnerships (dip) or the Distributions from trusts (dit) worksheets.

the excess (if any) and hold it available for use in a future year.

We've created the esi as a multiple transaction worksheet for recording and storing the details of your clients' early stage investor company (ESIC) acquisitions. See Tax incentives for early stage investors on the ATO website.

Tax pre-fill for individuals

For individual investors, use the Pre-fill Manager to assist with completing help you complete the worksheet. See Pre-fill Manager.

There are variations to the layout of the esi, as different rules apply to some different return types, for example, superannuation funds and partnerships:

Worksheet Examples

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ESI worksheet examples for different returns

Company return

Fund and Selfself-managed fund returns

Individual return

Trust return

Partnership return

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