Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 9/58)
Character Range: 2321748–2324464

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 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 of funds 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".

Effect of converting convertible notes etc.
 (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.
 (5) A partnership that acquired a unit in a unit trust by converting a *convertible note issued by or on behalf of the trustee of the unit trust is treated, for the purposes of subparagraphs (1)(f)(ii) and (2)(e)(ii), as having owned the unit from the time when it last acquired the convertible note.
 (6) Subsection (4) or (5) applies whether or not the acquisition of the *convertible note, or convertible preference share, was an *eligible venture capital investment.
 (7) A partnership that converts a *convertible note into a share or a unit is treated, for the purposes of subparagraphs (1)(f)(ii) and (2)(e)(ii), as continuing to own the convertible note until the partnership no longer owns the share or unit.

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)