Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:3_4:p1
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 3 cl 4 (pt 1/4)
Character Range: 79766–82438

4  At the end of Division 118
Add:

Subdivision 118‑G—Venture capital

Guide to Subdivision 118‑G

118‑500  What this Subdivision is about

      A non‑resident tax exempt pension fund that invests in venture capital equity in an Australian company or fixed trust (a resident investment vehicle) can disregard a capital gain or capital loss it makes from a CGT event that happens to that equity if:

                (a) the entity is registered under the Pooled Development Funds Act 1992; and
                (b) the entity owned the equity for at least 12 months.

Table of sections

118‑505 Exemption for certain foreign venture capital
118‑510 Meaning of resident investment vehicle
118‑515 Meaning of venture capital entity
118‑520 Meaning of foreign superannuation fund
118‑525 Meaning of venture capital equity

[This is the end of the Guide.]

118‑505  Exemption for certain foreign venture capital

 (1) A *capital gain or *capital loss is disregarded if it is made from a *CGT event happening in relation to a *CGT asset that is *venture capital equity where the asset:
 (a) was *acquired by a *venture capital entity; and
 (b) at the time of the CGT event:
 (i) was owned by that entity; and
 (ii) had been owned by that entity for at least 12 months.

 (2) The *venture capital entity must be registered under Part 7A of the Pooled Development Funds Act 1992 at the time of the *CGT event.

118‑510  Meaning of resident investment vehicle

 (1) A resident investment vehicle is a company that is an Australian resident, or a trust that is a *resident trust for CGT purposes, if:
 (a) the sum of:
 (i) the total value of the assets of the company or trust, and
 (ii) the total value of the assets of any company or trust *connected with the first company or trust; and
 (iii) the amount of the investment proposed to be made in venture capital equity in the company or trust by the relevant *venture capital entity;
  is not more than $50,000,000 just before the time (the acquisition time) when the relevant venture capital entity acquires venture capital equity in the company or trust; and
 (b) the primary activity of the company or trust is not, at any time, property development or land ownership.

 (2) However, a trust is not a resident investment vehicle unless entities have *fixed entitlements to all of the income and capital of the trust.

 (3) The total value of the assets of a company or trust is the total value of its assets (both current and non‑current) as shown in:
 (a) the last audited accounts prepared for the company or trust for the purposes of the Corporations Law that relates to a period ending less than 18 months before the