Changes to VCLP Program
A number of changes to the Venture Capital Act and the Income Tax Assessment Act came into effect on 21 June 2007. These changes were foreshadowed in the 2006 Budget and are designed to enhance the operation of the venture capital limited partnership program by:
- allowing eligible venture capital investments to be acquisitions of units in units trusts and convertible notes, that are equity interests, in companies and unit trusts;
- allowing some investments (up to 20 per cent of committed capital) to be in companies and unit trusts that are not located in Australia;
- allowing limited partners to be residents of any foreign country and general partners and VCLPs to be resident of, or established in, countries with which Australia has a double tax agreement in force;
- allowing auditors to be appointed at the end of the financial year in which an investment is made; and
- reducing the minimum partnership capital required for registration as a limited partnership under the Venture Capital Act to $10 million.
If you have any inquiries regarding the changes, please contact the Venture Capital Inquiry Line on (02) 6213 6609 or email VentureCapital@innovation.gov.au