Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p15
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 15/26)
Character Range: 1269305–1272009

investment, the partnership was an *early stage venture capital limited partnership that was *unconditionally registered; and
 (d) the investment meets all of the *additional investment requirements for ESVCLPs for the investment; and
 (e) when the income was derived, the partnership:
 (i) owned the investment; and
 (ii) was an early stage venture capital limited partnership that was unconditionally registered.

Residency requirements for general partners
 (3) However, if the entity is a *general partner in the partnership, this section does not apply to the entity unless the entity is:
 (a) an Australian resident; or
 (b) a resident of a foreign country in respect of which a double tax agreement (as defined in Part X of the Income Tax Assessment Act 1936) is in force that is an agreement of a kind referred to in subparagraph (b)(i), (ia), (ii), (iii), (iv) or (v) of that definition.
 (4) For the purposes of this section, the place of residence of a *general partner in a *limited partnership:
 (a) that is a company or limited partnership; and
 (b) that is not an Australian resident;
is the place in which the general partner has its central management and control.

Beneficiaries' shares of capital gains made by unit trusts
 (5) For the purposes of this section, an entity's share of income derived from an *eligible venture capital investment that is an investment in a unit trust includes any present entitlement of the entity, as a beneficiary, to a share of an amount included in the assessable income of the unit trust under section 102‑5.

Carried interests
 (6) This section does not apply to an entity's share of income derived from an *eligible venture capital investment to the extent that the income is a payment of a *carried interest of a *general partner in an *ESVCLP or an *AFOF.

51‑54  Gain or profit from disposal of eligible venture capital investments

Partners in VCLPs and ESVCLPs
 (1) An entity's share of any gain or profit made from the disposal or other realisation of an *eligible venture capital investment is exempt from income tax if:
 (a) it is made by a *VCLP, or an *ESVCLP, that is *unconditionally registered; and
 (b) were that disposal or other realisation to be a *disposal of a *CGT asset, the entity's share of any *capital gain or *capital loss would be disregarded under section 118‑405 or 118‑407.
 (1A) An entity's share of any gain or profit made:
 (a) by an *ESVCLP that is *unconditionally registered; and
 (b) from the disposal or other realisation of an *eligible venture capital investment;
is exempt from income tax to the extent that, were that disposal or other realisation to be a *disposal of a *CGT asset, the equivalent *capital