Document ID: chunk:federal_register_of_legislation:C2004A01073:clause:1_6:p4
Version: federal_register_of_legislation:C2004A01073
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 4/10)
Character Range: 14826–17574

Capital Act 2002. It is important to understand that this is a separate requirement from registration under Part 2 of that Act (which effectively determines whether an entity is an AFOF).

 It is technically possible to be registered under Part 2 of that Act without meeting the registration requirements of an AFOF, but you might still not be entitled to exemption under this section.

Meaning of Australian venture capital fund of funds

 (3) A *limited partnership is an Australian venture capital fund of funds at a particular time if, at that time, the partnership's registration as an Australian venture capital fund under Part 2 of the Venture Capital Act 2002 is, or is taken to have been, in force.

For when the registration is, or is taken to have been, in force, see section 13‑10 of the Venture Capital Act 2002.

Note: In this Act and the Venture Capital Act 2002, the term "Australian venture capital fund of funds" is usually abbreviated to "AFOF".

Shares acquired by converting convertible notes

 (4) A partnership that acquired a *share in a company by converting a *convertible note, or a convertible preference share, issued by the company is treated, for the purposes of subparagraphs (1)(f)(ii) and (2)(e)(ii), as having owned the share from the time when it last acquired the convertible note or convertible preference share.

118‑415  Exemption for certain venture capital investments by foreign residents

General

 (1) A *capital gain or a *capital loss from a *CGT event is disregarded if:
 (a) the CGT event relates to an investment that you made that is an *eligible venture capital investment; and
 (b) you were an *eligible venture capital investor when you made the investment; and
 (c) at the time of the CGT event:
 (i) you owned the investment; and
 (ii) you had owned the investment for at least 12 months; and
 (iii) you were an eligible venture capital investor.

Meaning of eligible venture capital investor

 (2) An entity is an eligible venture capital investor at a particular time if, at that time, the entity:
 (a) is a *tax‑exempt non‑resident; and
 (b) is registered under Part 3 of the Venture Capital Act 2002.

Shares acquired by converting convertible notes

 (3) An entity that acquired a *share in a company by converting a *convertible note, or a convertible preference share, issued by the company is treated, for the purposes of subparagraph (1)(c)(ii), as having owned the share from the time when it last acquired the convertible note or convertible preference share.

118‑420  Meaning of eligible venture capital partner etc.

 (1) A partner in a *limited partnership is an eligible venture capital partner if:
 (a) the partner is a *tax‑exempt non‑resident; or
 (b) the partner is