Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

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History

Pt 3-1 inserted by No 46 of 1998.

Division 118 - Exemptions  

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Div 118 inserted by No 46 of 1998.

Subdivision 118-F - Venture capital investment  

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Subdiv 118-F inserted by No 136 of 2002.

Former Subdiv 118-F repealed by No 165 of 1999 and inserted by No 94 of 1999.

SECTION 118-400   What this Subdivision is about  

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You 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.

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S 118-400 amended by No 78 of 2007 , s 3 and Sch 8 item 350, by omitting " For this purpose, registration does not need to be unconditional. " from the end of the note, effective 19 December 2002.

S 118-400 amended by No 78 of 2007 , s 3 and Sch 8 items 116 to 118, by substituting " You can ignore " for " Some foreign residents disregard " , inserting " or early stage venture capital limited partnerships " after " venture capital limited partnerships " and inserting the paragraph beginning with " However, unless investments " at the end, applicable to assessments for the 2007-2008 year of income and later years of income.

S 118-400 amended by No 78 of 2007 , s 3 and Sch 8 item 1, by inserting " and unit trusts " after " companies " (first occurring), applicable to assessments for the 2007-2008 year of income and later years of income.

S 118-400 inserted by No 136 of 2002.

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