2002 venture capital tax concession: eligible venture capital investments

Background

The 2002 venture capital tax concession provides tax exemptions to partners in a venture capital limited partnership (VCLP), Australian venture capital fund of funds (AFOF) as well as to 'eligible venture capital investors'.

The exemption disregards, for income tax purposes, revenue or capital gains and losses derived from eligible venture capital investments by:

• 'eligible venture capital partners' in a VCLP where the VCLP makes the relevant investment
• eligible venture capital partners in an AFOF where the AFOF is a partner in a VCLP which made the relevant investment
• eligible venture capital partners in an AFOF where the AFOF invested directly, and
• eligible venture capital investors who invested directly.

The early stage venture capital tax concession provides tax exemptions to resident and foreign partners on all income and gains derived from, or from disposal of, eligible venture capital investments made through an early stage venture capital limited partnership (ESVCLP)