Description:

Fund managers seeking to raise a new venture capital fund of at least $10 million and not more than $100 million for investing in Australian businesses may be able to register the fund as an ESVCLP.

Registration entitles a fund to flow-through tax treatment and its investors (whether resident or non-resident) receive a complete tax exemption on their share of the fund's income (both revenue and capital).

Eligible Australian businesses with assets of less than $50 million may be able to access capital from funds registered under this programme and should approach the relevant fund manager. AusIndustry is not responsible for investment terms or decisions.

Registration:

Potential venture capital fund managers are required to submit a complete application to Innovation Australia for registration that includes the following:

An ESVCLP application form (for a copy of the application form, please email:venturecapital@industry.gov.au).
An Investment Plan (this is included in the application form, ensure you follow and address all criteria in Part D of the application form).
A Limited Partnership Deed with a certificate of registration as an Incorporated Limited Partnership from the relevant State Government authority.
Individual investor Subscription Deeds (if seeking unconditional registration).
The fund’s Information Memorandum and any public offer documents.

All information should be read in conjunction with the relevant legislation: Venture Capital Act 2002, Income Tax Assessment Act 1997 and Income Tax Assessment Act 1936 which can be found at ComLaw  [External Site] .