Income Tax Assessment Act 1997



Division 61 - Generally applicable tax offsets  

Subdivision 61-P - ESVCLP tax offset  

Operative provisions

SECTION 61-765   Amount of the ESVCLP tax offset - general case  

If subsection 61-760(1) applies, the amount of the *tax offset for the income year is 10% of the lesser of:

(a) the sum of the amounts the partner contributes to the *ESVCLP during the income year, reduced by any amounts excluded under subsection (2); and

(b) the amount (the investment related amount ) worked out under subsection (3).

The following amounts are excluded for the purposes of paragraph (1)(a) in relation to the income year:

(a) any parts of a contribution the partner made to the *ESVCLP that the ESVCLP is, or will become, obliged to repay to the partner, whether or not:

(i) the obligation arises during the income year; or

(ii) the obligation arises only when the partner requests repayment;

(b) any parts of a contribution the partner made to the ESVCLP that, during the income year, are repaid to the partner within 12 months after the contribution was made;

(c) any parts of a contribution the partner made to the ESVCLP to the extent that they comprise a commitment to provide money or property in the future.

Work out the investment related amount as follows:

Partner ' s share × Sum of eligible venture capital investments


partner ' s share
is the partner ' s share of the capital of the *ESVCLP at the end of the income year, expressed as a percentage of the entire capital of the ESVCLP.

sum of eligible venture capital investments
is the sum of:

(a) all the amounts of the *eligible venture capital investments made by the *ESVCLP during the period starting at the start of the income year and ending 2 months after the end of the income year; and

(b) all the incidental costs, incurred during that period, of making those investments; and

(c) all the administrative expenses, incurred during that period, associated with those investments.

For the purposes of paragraph (a) of the definition of sum of eligible venture capital investments in subsection (3), disregard the amounts of any *eligible venture capital investments that were taken into account in working out the amount of a *tax offset under this Subdivision for a preceding income year.

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