For more than two years now (from 1 July 2016) two key tax incentives have been available for investors considering putting their money behind qualifying start-up businesses - or as the ATO has dubbed them, early stage innovation companies (ESICs).

The incentives provide eligible taxpayers who invest in new shares in an ESIC with:

(1) a non-refundable carry forward tax offset equal to 20% of the amount paid for their qualifying investments.  This is capped at a maximum tax offset amount of $200,000 for "sophisticat...