Things you need to know
Are you entitled to claim an early stage venture capital limited partnership tax offset?
You may be able to claim the early stage venture capital limited partnership (ESVCLP) tax offset if one or both of the following applies:
- you are entitled to the ESVCLP tax offset in 2022–23
- you have an amount of unused ESVCLP tax offset carried forward from a previous year.
No |
Go to T8 Early stage investor 2023 or return to main menu Individual tax return instructions 2023. |
Yes |
Read below. |
Working out your 2022–23 tax offset
Your 2022–23 tax offset is the sum of your tax offsets worked out based on your contributions to the ESVCLP:
- as a limited partner of the ESVCLP, or
- through a partnership or a trust.
The ESVCLP must have become unconditionally registered on or after 7 December 2015.
If you are a limited partner of an ESVCLP, your amount of the tax offset for each contribution in the ESVCLP is 10% of the lesser of the following:
- your total contribution to the ESVCLP during 2022–23 (certain exclusions apply), and
- your share (based on your interest in the entire capital of the ESVCLP at the end of 2022–23) of the sum of eligible venture capital investments made by the ESVCLP during the period from the start of 2022–23 and ending 2 months after the end of 2022–23.
Work out your amount of the ESVCLP tax offset by referring to ESVCLP tax incentives and concessions.
If you are a partner in a partnership or a beneficiary of a trust which has contributed to an ESVCLP, you may be entitled to an amount of ESVCLP tax offset. The partnership or the trustee of the trust must provide you with written notification to allow you to work out your share of the tax offset. If a written notification has not been provided, contact the partnership or the trustee.
This tax offset is non-refundable, however you can carry it forward if it is not fully utilised in 2022–23. Any amount of unused tax offset able to be carried forward will be shown on your notice of assessment for the year ended 30 June 2023.
Working out your tax offset carried forward from previous year
Your notice of assessment or amended notice of assessment for the year ended 30 June 2022 should show if you have any unused ESVCLP tax offset that is carried forward to 2022–23.
Do you have an amount of unused ESVCLP tax offset shown on your notice of assessment or amended notice of assessment for the year ended 30 June 2022?
No |
|
Yes |
Read below. |
The unused ESVCLP tax offset carried forward from the previous year may need to be adjusted for any net exempt income. Exempt income is explained in Amounts that you do not pay tax on 2023.
The unused ESVCLP tax offset carried forward from a previous year is reduced by $0.30 for every dollar of unused net exempt income, provided you had taxable income for that year. Unused net exempt income is any net exempt income left after deducting any tax losses of earlier income years from that year's net exempt income.
For more information on ESVCLPs, see Venture capital and early stage venture capital limited partnerships.
If you have unused net exempt income and are unsure how to calculate the ESVCLP tax offset carried forward from a previous year, contact us for more information. Otherwise, read on.
Completing your supplementary tax return
Write your 2022–23 tax offset at question T7 – label K. Do not show cents.
Write the amount of unused ESVCLP tax offset carried forward from 2021–22, reduced by any net exempt income, at question T7 – label M. Do not show cents.
Where to go next
- Go to question T8 Early stage investor 2023.
- Return to main menu Individual tax return instructions 2023.
- Go back to question T6 Landcare and water facility 2023.