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Tax Laws Amendment (Tax Incentives for Innovation) Bill 2016

2016

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

As passed by both Houses

 

 

 

 

Tax Laws Amendment (Tax Incentives for Innovation) Bill 2016

 

No.      , 2016

 

 

 

 

 

A Bill for an Act to amend the law relating to taxation, and for related purposes

   

   



Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedules............................................................................................ 3

Schedule 1—Tax incentives for early stage investors                                        4

Part 1—Main amendments                                                                                          4

Income Tax Assessment Act 1997                                                                               4

Part 2—Other amendments                                                                                       16

Income Tax Assessment Act 1936                                                                             16

Income Tax Assessment Act 1997                                                                             18

Taxation Administration Act 1953                                                                          19

Part 3—Application of amendments                                                                    20

Schedule 2—Venture capital investment                                                                21

Part 1—Tax offset for ESVCLP investments                                                 21

Income Tax Assessment Act 1997                                                                             21

Part 2—ESVCLP fund size cap                                                                             27

Venture Capital Act 2002                                                                                         27

Part 3—Removing the ESVCLP divestiture registration requirement 28

Income Tax Assessment Act 1997                                                                             28

Venture Capital Act 2002                                                                                         30

Part 4—CGT exemption for fixed and unit trust beneficiaries of partners in ESVCLPs                32

Income Tax Assessment Act 1997                                                                             32

Part 5—Requirements for entities in which VCLPs, ESVCLPs and AFOFs invest         33

Income Tax Assessment Act 1997                                                                             33

Venture Capital Act 2002                                                                                         39

Part 6—Foreign venture capital funds of funds                                             43

Income Tax Assessment Act 1997                                                                             43

Venture Capital Act 2002                                                                                         44

Part 7—Rulings that activities are not ineligible activities                        45

Income Tax Assessment Act 1997                                                                             45

Taxation Administration Act 1953                                                                          45

Venture Capital Act 2002                                                                                         52

Part 8—Auditing requirements                                                                               54

Income Tax Assessment Act 1997                                                                             54

Part 9—Managed investment trusts                                                                      58

Income Tax Assessment Act 1997                                                                             58

Taxation Administration Act 1953                                                                          59

Part 10—Conditional registration                                                                          60

Venture Capital Act 2002                                                                                         60

 

 



A Bill for an Act to amend the law relating to taxation, and for related purposes

The Parliament of Australia enacts:

1   Short title

                   This Act may be cited as the Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 .

2   Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

 

2.  Schedule 1

The later of:

(a) the day this Act receives the Royal Assent; and

(b) 1 July 2016.

 

3.  Schedule 2, Parts 1 to 8

At the same time as the provisions covered by table item 2.

 

4.  Schedule 2, item 73

The later of:

(a) the same time as the provisions covered by table item 2; and

(b) immediately after the commencement of Schedule 4 to the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 .

However, this item does not commence at all if the event mentioned in paragraph (b) does not occur.

 

5.  Schedule 2, item 74

At the same time as the provisions covered by table item 2.

 

6.  Schedule 2, item 75

At the same time as the provisions covered by table item 2.

However, this item does not commence at all if the provisions covered by table item 2 do not commence before the commencement of Schedule 4 to the Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 .

 

7.  Schedule 2, item 76

The later of:

(a) the day this Act receives the Royal Assent; and

(b) 1 July 2016.

 

8.  Schedule 2, Part 10

At the same time as the provisions covered by table item 2.

 

Note:          This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

             (2)  Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3   Schedules

                   Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.