Provides venture capital limited partnerships (VCLPs) with a flow-through tax incentive (exemption from capital gains tax for gains made on eligible investments) for foreign investors to stimulate Australia’s venture capital sector by attracting foreign investors.

The Venture Capital Limited Partnership (VCLP) program aims to stimulate Australia's venture capital sector. The program:

• helps fund managers attract pooled capital, so they can raise new venture capital funds of over $10 million to invest in innovative Australian businesses
• offers tax benefits to fund managers and eligible foreign investors
• connects investors with innovative Australian businesses
• helps Australian businesses grow by receiving financial support

There is no 'early stage' test for investments as there is with Early Stage Venture Capital Limited Partnerships.

Fund managers can apply to Innovation and Science Australia to register a partnership as a VCLP.

The Department of Industry, Science, Energy and Resources and the Australian Taxation Office (ATO) jointly administer the program on behalf of the Australian Government.

You can apply to register if you are:

• a new venture capital fund
• a limited partnership or an incorporated limited partnership
• established in Australia or a country that has a double tax agreement with Australia

You must have:

• a general partner (often also the fund manager) who is a resident of either Australia or a country that has a double tax agreement with Australia
• at least $10 million in committed capital (although a partnership that doesn't satisfy this requirement may be eligible for conditional registration)

In addition, you must have a qualifying partnership agreement that:

• ensures the partnership remains in existence for between 5 and 15 years
• requires partners to contribute capital when required
• prohibits adding new partners except as provided for in the agreement
• prohibits increasing committed capital except as provided for in the agreement
• confers on the general partner the right to require partners to contribute their committed capital to the partnership
• includes a plan outlining the partnership’s intended investment activities.

• Phone: 13 28 46