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
3 After section 26-65
Insert:
26-68 Loss from disposal of eligible venture capital investments
Partners in VCLPs
(1) You cannot deduct under this Act your share of a loss made from the disposal or other realisation of an *eligible venture capital investment 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, your share of any *capital gain or *capital loss would be disregarded under section 118-405.
Partners in AFOFs
(2) You cannot deduct under this Act your share of a loss made from the disposal or other realisation of an *eligible venture capital investment 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, your share of any *capital gain or *capital loss would be disregarded under section 118-410.
Eligible venture capital investors
(3) You cannot deduct under this Act a loss made from the disposal or other realisation of an *eligible venture capital investment 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.