Venture Capital Tax Concessions Review

The venture capital tax concessions programs seek to increase the level of venture capital investments in Australia and develop the skills and experience of Australian venture capital fund managers. The programs also aim to promote a culture of innovation and entrepreneurial risk-taking, by incentivising the use of investment vehicles dedicated to early-stage and later-stage start-ups and improving access to more and cheaper financing for these types of businesses. The programs encompass three types of investment structures that provide concessional treatment for venture capital investors. These structures are:

  • early-stage venture capital limited partnerships (ESVCLPs)
  • venture capital limited partnerships (VCLPs); and
  • Australian Funds of Funds (AFOFs).

The Tax Institute is of the view that the programs have had a positive impact on the growth of Australian venture capital, and have played a significant part in creating a vibrant start-up environment in Australia. The substantial impact of the programs on the Australian market could not have been anticipated at the time of their inception.

Submission prepared by:

The Tax Institute

Submitted to:

Office of Industry Innovation and Science Australia 
Venture Capital Tax Concessions Review 
Department of Industry, Science, Energy and Resources

For more information, contact:

Julie Abdalla, FTI
Tax Counsel, The Tax Institute
(02) 8223 0058