Venture Capital Act 2002

PART 2 - REGISTRATION OF LIMITED PARTNERSHIPS

Division 7 - A guide to this Part

SECTION 7-1 WHAT THIS PART IS ABOUT

Industry Innovation and Science Australia can register limited partnerships as venture capital limited partnerships, early stage venture capital limited partnerships or Australian venture capital funds of funds.

Registration is one of the requirements before investments of venture capital through a limited partnership can attract the operation of:

• the capital gains tax exemption relating to venture capital under Subdivision 118-F of the Income Tax Assessment Act 1997 (and the related provisions about similar income gains and losses); and

• the income tax exemption under section 51-52 of the Income Tax Assessment Act 1997 (if the partnership is an early stage venture capital limited partnership); and

• the " flow-through " treatment, under Division 5 of Part III of the Income Tax Assessment Act 1936 , of the income of limited partnerships.

Broadly speaking, Industry Innovation and Science Australia will register a limited partnership under Division 13 if an application meets the requirements of Division 11 , unless Industry Innovation and Science Australia is satisfied that the partnership does not meet the applicable registration requirements of Division 9 .

Conditional registration is an option if an application does not meet the requirements of Division 11 .

Note:

Conditional registration becomes important if full registration is achieved. Registration is then backdated at least to the time of conditional registration.

Industry Innovation and Science Australia can revoke a registration under Division 17 . Broadly speaking, the grounds for revocation are:

• failure to meet the applicable registration requirements of Division 9 ; and

• failure to provide information as required under Division 15 .

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