Taxation Laws Amendment (Venture Capital) Act 2002 (136 of 2002)

Schedule 1   Capital gains and capital losses, and related matters

Income Tax Assessment Act 1997

4   Before section 51-55 (first occurring)

Insert:

51-54 Gain or profit from disposal of eligible venture capital investments

Partners in VCLPs

(1) An entity’s share of any gain or profit made from the disposal or other realisation of an *eligible venture capital investment is exempt from income tax if:

(a) it is made by a *VCLP that is *unconditionally registered; and

(b) were that disposal or other realisation to be a *disposal of a *CGT asset, the entity’s share of any *capital gain or *capital loss would be disregarded under section 118-405.

Partners in AFOFs

(2) An entity’s share of any gain or profit made from the disposal or other realisation of an *eligible venture capital investment is exempt from income tax if:

(a) it is made by:

(i) an *AFOF that is *unconditionally registered; or

(ii) a *VCLP that is unconditionally registered and in which an AFOF that is *unconditionally registered is a partner; and

(b) were that disposal or other realisation to be a *disposal of a *CGT asset, the entity’s share of any *capital gain or *capital loss would be disregarded under section 118-410.

Eligible venture capital investors

(3) Any gain or profit made from the disposal or other realisation of an *eligible venture capital investment is exempt from income tax if:

(a) you are an *eligible venture capital investor; and

(b) were that disposal or other realisation to be a *disposal of a *CGT asset, any *capital gain or *capital loss would be disregarded under section 118-415.