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Early Stage Test
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| Records that the company was not listed on an official stock exchange in Australia or a foreign country. | Front page of a favourable ATO ruling, or Exchange search lookup. |
| Record of the issue date of the shares | ASIC Company Search |
| The company’s and its 100% subsidiaries financial records previous financial year reports (show $1 million or less expenses and $200,000 or less in income). | Extracts of prior year taxation returns or consolidated company financial statements showing total income and total expenses |
| Independent records for ASIC Incorporation or registration on the ABR | Free ASIC and ABR lookup |
| Proof that company was undertaking innovation activities solely on its own, or that the ownership structure did not defeat the purpose of ESIC concessions. The incentives may not apply to sophisticated structured ventures. | Illustrated Company Structure Chart or equivalent disclosure from ASIC registered agent. |
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Principals (Innovation) Based Test |
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| Pt1:The company genuinely focussed on developing, a new or significantly improved product, service, process or marketing method for commercialisation? | Proof that the company is exiting pre-commercialisation phase /R&D phase, i.e. business plans, commercialisation plan / go-to-market strategy, Competition analysis. This may include Company Financial Modelling, Sales strategy, Pipeline, Sales records, Marketing material, Company communications, Falling and or Evolving R&D spend ratio, EMDG or other evidence that confirms the company was genuinely focused and was, at the time developing for commercialisation |
| Pt2:The company genuinely focussed on developing, a new or significantly improved product, service, process or marketing method for commercialisation? | Refer to the Oslo manual definition for New or Significantly improved and reference competitive and market analysis, business plans, commercialisation strategy and other demonstrated evidence (e.g. R&D claims, commercialisation grants etc) |
| The innovation has high growth potential | Evidence that the sales footprint had potential to expand into a broad addressable market, Sales strategy, Pipeline, Sales records, Marketing material, Company communications, business plans and presentations etc. |
| Demonstrated ability to scale | Evidence of the potential to scale up the business, via operating leverage (market share), cost per unit efficiencies, cost decreases on turn over or otherwise. Numerical and practical review of gross margin and overhead leverage. Business presentations maybe insufficient without additional supporting documentation. |
| Demonstrated access to wide markets | How the company demonstrated that it had potential to a boarder than local market, e.g. multi state or international. For example, Sales plans & forecasts, channel partners, national/international customers, broadcast distribution (e.g. via app or marketplace) or otherwise. Demonstration requires more than mere proposition. The evidence must also show capability, e.g. via cost per unit cost decrease on turnover |
| Competitive advantage | May involve commercially sensitive company docs showing unique consumer benefit, cost differential, measure of value to customers, rarity or other attributes that set the company apart. Alternates evidence may be in the form of registration of IP (encapsulating competitive advantage), Innovation or commercialisation awards, relevant government grants, marketplace / competitor analysis or otherwise. |
no