The LuminaX Accelerator, designed and delivered by Cohort Innovation Space in Australia’s Gold Coast, has officially gained Early Stage Innovation Company (ESIC) eligibility through a private ruling by the Australian Taxation Office.
In today’s company announcement, Cohort Innovation Space confirmed LuminaX is now one of only a handful of accelerator programs around the country to gain ESIC eligibility, meaning startups who are accepted into the 2022 LuminaX Accelerator will gain 50 points out of the 100 points required to qualify as an Early Stage Innovation Company, unlocking significant tax incentives for early stage investors.
The tax incentives provide eligible investors who purchase new shares in an Early Stage Innovation Company with:
- non-refundable carry forward tax offset equal to 20% of the amount paid for their eligible investments. This is capped at a maximum tax offset amount of $200,000 for the investor and their affiliates combined in each income year
- modified capital gains tax (CGT) treatment, under which capital gains on qualifying shares that are continuously held for at least 12 months and less than 10 years may be disregarded. Capital losses on shares held less than 10 years must be disregarded
Off the back of a hugely successful first cohort, LuminaX is expected to draw startup interest from around Australia when applications open for the 2022 intake on 28 February.
Taking place from May through to August, the 14-week accelerator will provide comprehensive support to ten startups, taking them through a rapid and immersive program aimed at accelerating growth and commercialising successful, high-growth startups in the healthtech, medtech and biotech sectors.
Not only has LuminaX been deemed an ESIC eligible accelerator, in 2022 the Gold Coast based program is also being backed by a number of new corporate, industry, education, government and venture partners to be announced in the coming weeks.
To meet the early stage test, a startup company must also meet four requirements. These requirements are tested at the point in time immediately after the company issues the shares to the investor. The four requirements are:
- The company must have been incorporated or registered with an ABN
- The company must have total expenses of $1 million or less in the previous income year
- The company must have assessable income of $200,000 or less in the previous income year
- The company’s equity interests are not listed for quotation in the official list of any stock exchange, either in Australia or a foreign country.
Applications for the 2022 LuminaX Accelerator will open on 28 February through to 12 April. The 14-week program will take place from May through to August 2022 at Cohort Innovation Space, Gold Coast, Australia.
For more information on tax incentives for Early Stage Investors, and qualifying as an Early Stage Innovation Company, visit the Australian Taxation Office webpage here.