Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This subsection applies to a company at a particular time (the test time ) in an income year (the current year ) if:
(a) the company was:
(i) incorporated in Australia within the last 3 income years (the latest being the current year); or
(ii) incorporated in Australia within the last 6 income years (the latest being the current year), and across the last 3 of those income years before the current year it and its * 100% subsidiaries (if any) incurred total expenses of $1 million or less; or
(iii) registered in the * Australian Business Register within the last 3 income years (the latest being the current year); and
(b) the company and its 100% subsidiaries (if any) incurred total expenses of $1 million or less in the income year before the current year; and
(c) the company and its 100% subsidiaries (if any) had a total assessable income of $200,000 or less in the income year before the current year; and
(d) at the test time, none of the company's * equity interests are listed for quotation in the official list of any stock exchange in Australia or a foreign country; and
(e) at the test time, the company has at least 100 points under section 360 - 45, or:
(i) the company is genuinely focussed on developing for commercialisation one or more new, or significantly improved, products, processes, services or marketing or organisational methods; and
(ii) the business relating to those products, processes, services or methods has a high growth potential; and
(iii) the company can demonstrate that it has the potential to be able to successfully scale that business; and
(iv) the company can demonstrate that it has the potential to be able to address a broader than local market, including global markets, through that business; and
(v) the company can demonstrate that it has the potential to be able to have competitive advantages for that business; and
(f) at the test time, the company is not a foreign company (within the meaning of the Corporations Act 2001 ).
Note: For the purposes of paragraph (e), one way a company can demonstrate something is by engaging the services of another entity.
(2) For the purposes of paragraph (1)(c), disregard any of the following:
(a) an Accelerating Commercialisation Grant under the program administered by the Commonwealth known as the Entrepreneurs' Programme;
(b) an amount required to be included in the company's assessable income under subsection 355 - 450(1).
(3) Subparagraphs (1)(e)(i) to (v) cannot be satisfied for:
(a) a product, process, service or method; or
(b) an improvement to a product, process, service or method;
that is of a kind prescribed by regulations made for the purposes of this subsection.
(4) Subsection (1) does not apply to a company if, before the test time, the company engaged in an activity of a kind prescribed by regulations made for the purposes of this subsection.