Document ID: chunk:federal_register_of_legislation:C2004A01073:clause:1_6:p3
Version: federal_register_of_legislation:C2004A01073
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 3/10)
Character Range: 12344–15070

not investment registration requirements; and
 (e) at the time of the CGT event, the partnership:
 (i) was an Australian venture capital fund of funds that was unconditionally registered; and
 (ii) in the case of a capital gain—met all of the registration requirements of an AFOF that are not investment registration requirements; and
 (f) at the time of the CGT event, the VCLP:
 (i) owned the investment; and
 (ii) had owned the investment for at least 12 months; and
 (iii) was unconditionally registered; and
 (iv) in the case of a capital gain—met all of the registration requirements of a VCLP that are not investment registration requirements.

Note: The registration requirements of an AFOF are set out in section 9‑5 of the Venture 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.

Gains or losses from direct investments

 (2) All of your share in a *capital gain or a *capital loss from a *CGT event is disregarded if:
 (a) you are an *eligible venture capital partner in a *limited partnership; and
 (b) in the case of a capital gain—the CGT event relates to an *eligible venture capital investment that the partnership made in a company in which a *VCLP, of which the partnership is a partner, owns one or more eligible venture capital investments; and
 (c) when the investment was made, the partnership:
 (i) was an *Australian venture capital fund of funds that was *unconditionally registered; and
 (ii) met all of the *registration requirements of an AFOF that are not *investment registration requirements; and
 (d) when the investment was made, the VCLP owned one or more eligible venture capital investments in the company referred to in paragraph (b); and
 (e) at the time of the CGT event, the partnership:
 (i) owned the investment; and
 (ii) had owned the investment for at least 12 months; and
 (iii) was an Australian venture capital fund of funds that was unconditionally registered; and
 (iv) in the case of a capital gain—met all of the registration requirements of an AFOF that are not investment registration requirements.

Note: The registration requirements of an AFOF are set out in section 9‑5 of the Venture 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