Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 17/58)
Character Range: 2341365–2344194

Subsection (13A) does not apply in circumstances prescribed by regulations made for the purposes of this subsection.

Industry Innovation and Science Australia discretion
 (14) A company is taken to meet the requirements of subsection (3) even if it fails to satisfy at least 2 of the requirements in that subsection if *Industry Innovation and Science Australia determines under section 25‑15 of the Venture Capital Act 2002 that:
 (a) the company's primary activity is not an ineligible activity mentioned in subsection (13); and
 (b) the failure is temporary and did not exist at the time the investment referred to in subsection (1) was made and, if it has been disposed of, when it was disposed of.

Temporary exception to the requirements for predominant activity
 (14A) A company is taken to meet the requirements of subsection (3) even if it fails to satisfy at least 2 of the requirements in that subsection if:
 (a) the company's sole purpose is making one or more investments that are *eligible venture capital investments, or would be eligible venture capital investments apart from paragraph (1)(d); and
 (b) during the 6 month period starting immediately before the first investment made by a *VCLP, *ESVCLP, *AFOF or *eligible venture capital investor, the company has used all of the amounts invested in it:
 (i) to make investments of a kind referred to in paragraph (a); or
 (ii) to engage in activities that are ancillary or incidental to making those investments.
However, this subsection applies to the company only for that 6 month period.

Activities disregarded in applying the predominant activity test
 (14B) If *Industry Innovation and Science Australia determines under section 25‑15 of the Venture Capital Act 2002 that:
 (a) the activities of the controlled entity of a company are complementary to one or more of the activities, of the company or its other controlled entities, that are not ineligible activities mentioned in subsection (13) of this section; and
 (b) the activities that, taken together, constitute the principal activities of the company and all of its controlled entities are not ineligible activities mentioned in subsection (13) of this section; and
 (c) in all the circumstances, it is appropriate that, for a period specified in the determination, the activities of the controlled entity are disregarded when applying subsection (3) of this section to the company;
in applying subsection (3) of this section to the company, disregard, for the period specified in the determination, the activities of the controlled entity.

Other entity can be taken to meet requirements relating to location in Australia
 (14C) In applying subsection (4) to a company in relation to its investment in another entity, the other entity is taken, for the purposes of subparagraph (4)(b)(ii), to