We're concerned about the error rate we've detected in partnership tax returns being completed by some partnerships that are registered with the Department of Industry, Science and Resources (DISR) for the Venture Capital Limited Partnership (VCLP) and Early Stage Venture Capital Limited Partnership (ESVCLP) programs. The errors include failing to complete the statement of distribution (SOD) labels correctly, or at all.
It's a key requirement of all partnerships that they lodge SODs. We use them to data match and assess if partners have returned their partnership income correctly. If you're registered for VCLP or ESVCLP, you need to meet all reporting requirements so you can retain your registration with DISR. This includes lodging a partnership tax return with us and correctly completing the SOD labels.
We're focusing on working with these partnerships to improve lodgments and correct these errors.
Lodge SODs correctly
When you lodge your SODs, it’s critical to ensure all the information is complete, correct and timely. Incomplete or incorrect statements may result in partners being unnecessarily subjected to queries or compliance activities. Our queries may add to the administrative costs of you managing the partnership and may also lead to penalties if any compliance action occurs. Therefore, ensure you complete all the required information for each partner in the SOD labels, including:
- the name of each individual or entity
- TFNs (if applicable)
- residential or business addresses
- date of birth for individuals
- ABNs for other entities (if they have one).
Remember that the SOD labels are part of the partnership tax return in which you make accountable statements to us. To avoid any unintended or adverse consequences, always provide accurate data.
Lodge digitally
As a result of recent updates we've made to our lodgment software, from 1 July 2025, partnerships of all sizes can lodge their SODs digitally using either:
More information
For more information on how these programs are designed to increase investment by giving tax concessions to eligible investors, or on reporting requirements, refer to:
- Venture capital and early stage venture capital limited partnerships – tax concessions
- business.gov.auExternal Link – reporting requirements.
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