Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 8/58)
Character Range: 2319301–2322002

was made, the partnership was an *Australian venture capital fund of funds that was *unconditionally registered; and
 (d) when the investment was made, the VCLP or ESVCLP was unconditionally registered; 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 or ESVCLP:
 (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, or all of the *registration requirements of an ESVCLP, (as the case requires) 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, or a unit trust, in which a *VCLP, or an *ESVCLP, of which the partnership is a partner, owns one or more eligible venture capital investments; and
 (c) when the investment was made, the partnership was an *Australian venture capital fund of funds that was *unconditionally registered; and
 (d) when the investment was made, the VCLP or ESVCLP 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