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  • New arrangements for venture capital investment

    The Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 received Royal Assent on 5 May 2016. It provides new tax incentives for investments in early stage venture capital limited partnerships. It also amends the early stage venture capital limited partnerships (ESVCLP) and venture capital limited partnerships (VCLP) regimes to improve access to capital and make the regimes more attractive to investors.

    Broadly, from 1 July 2016:

    • investors will receive a 10% non-refundable carry-forward tax offset on investments made through an ESVCLP, and
    • the maximum fund size for new and existing ESVCLPs will be increased to $200 million.

    Encouraging venture capital investment in FinTech

    In May 2016, the Australian Government sought feedback on how to ensure investors in FinTech start-up activities are eligible for the venture capital tax concessions. Submissions closed on 3 June 2016.

    For more information, see Encouraging venture capital investment in FinTechExternal Link on the Treasury website.

    Legislation and supporting material

    The Treasury Laws Amendment (2017 Measures No. 1) Act 2017External Link received Royal Assent on 4 April 2017. Schedule 1 of the Act made minor technical changes to the Income Tax Assessment Act 1997External Link to ensure:

    • where a trust is a limited partner, CGT consequences do not arise for a beneficiary in respect to that beneficiary’s share of income derived from a partnership that is exempt because of the venture capital tax concessions; and
    • the words used are consistent throughout the CGT rules.

    More information

      Last modified: 20 Apr 2017QC 48325