Commonwealth Consolidated Acts Commonwealth Consolidated ActsYou can ignore capital gains and capital losses from CGT events that relate to investments, in Australian companies and unit trusts (and in some cases foreign holding companies), that meet the requirements of this Subdivision.
These investments are made:
(a) through limited partnerships, known as venture capital limited partnerships or early stage venture capital limited partnerships, that are unconditionally registered under Part 2 of the Venture Capital Act 2002 ; or
(b) through limited partnerships, known as Australian venture capital funds of funds, that are unconditionally registered under that Part; or
(c) directly by foreign residents who are registered under Part 3 of that Act.
However, unless investments are made through early stage venture capital limited partnerships, you must be a foreign resident for this Subdivision to apply.
Note: Registration of a limited partnership under Part 2 of that Act also leads to its income and losses being assessed under Division 5 of Part III of the Income Tax Assessment Act 1936 on the basis that it is a partnership.
This is an exception to the general rule, under Division 5A of that Part, that limited partnerships are assessed as companies.
Table of sections
Operative provisions
118 - 405 Exemption for certain foreign venture capital investments through venture capital limited partnerships
118 - 407 Exemption for certain venture capital investments through early stage venture capital limited partnerships
118 - 408 Partial exemption for some capital gains otherwise fully exempt under section 118 - 407
118 - 410 Exemption for certain foreign venture capital investments through Australian venture capital funds of funds
118 - 415 Exemption for certain venture capital investments by foreign residents
118 - 420 Meaning of eligible venture capital partner etc.
118 - 425 Meaning of eligible venture capital investment --investments in companies
118 - 427 Meaning of eligible venture capital investment --investments in unit trusts
118 - 428 Additional investment requirements for ESVCLPs
118 - 430 Meaning of at risk
118 - 432 Findings of substantially novel applications of technology
118 - 435 Special rule relating to investment in foreign resident holding companies
118 - 440 Meaning of permitted entity value
118 - 445 Meaning of committed capital
118 - 450 Values of assets and investments of entities without auditors
118 - 455 Impact Assessment of this Subdivision