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Schedule 3—Fintech and venture capital amendments

Schedule 3 Fintech and venture capital amendments

   

Income Tax Assessment Act 1997

1  After subsection 118-425(13)

Insert:

        (13A)  However, none of the following activities are ineligible activities mentioned in subsection (13):

                     (a)  developing technology for use in relation to an activity referred to in paragraph (13)(b), (c) or (e);

                     (b)  an activity that is ancillary or incidental to the activity of developing technology referred to in paragraph (a) of this subsection;

                     (c)  an activity referred to in paragraph (13)(b), (c) or (e) that is the subject of a finding in force under section 118-432 at the time the investment is made.

        (13B)  Subsection (13A) does not apply in circumstances prescribed by regulations made for the purposes of this subsection.

2  After subsection 118-427(14)

Insert:

        (14A)  However, none of the following activities are ineligible activities mentioned in subsection (14):

                     (a)  developing technology for use in relation to an activity referred to in paragraph (14)(b), (c) or (e);

                     (b)  an activity that is ancillary or incidental to the activity of developing technology referred to in paragraph (a) of this subsection;

                     (c)  an activity referred to in paragraph (14)(b), (c) or (e) that is the subject of a finding in force under section 118-432 at the time the investment is made.

        (14B)  Subsection (14A) does not apply in circumstances prescribed by regulations made for the purposes of this subsection.

3  After section 118-430

Insert:

118-432   Findings of substantially novel applications of technology

Public findings

             (1)  * Innovation and Science Australia may, by legislative instrument, find that each activity within a specified class is a substantially novel application of one or more technologies.

Note:          A substantially novel application of a technology could, for example, take the form of a substantially novel product or service.

Private findings

             (2)  * Innovation and Science Australia may, on application by a company or unit trust, make a written decision:

                     (a)  finding that a specified activity is a substantially novel application of one or more technologies; or

                     (b)  refusing to make such a finding about a specified activity.

Note:          A refusal to make a finding is reviewable (see Part 5 of the Venture Capital Act 2002 ).

Period for which a finding is in force

             (3)  Subject to variation or revocation, a finding under subsection (1) or paragraph (2)(a) is in force for the period specified in the finding.

Note:          For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901 .

Applications for private findings

             (4)  An application for a finding under paragraph (2)(a) must be in the * form approved by Innovation and Science Australia.

             (5)  * Innovation and Science Australia must notify the applicant in writing of any decision under subsection (2) about the application.

             (6)  A failure to comply with subsection (5) does not affect the validity of a finding or decision.

Taxation Administration Act 1953

4  At the end of subsections 362-5(1) and 362-25(1) in Schedule 1

Add:

Note:          An activity will not be an ineligible activity for the purposes of subsections 118-425(13) and 118-427(14) of the Income Tax Assessment Act 1997 if, for example, it is covered by subsections 118-425(13A) and 118-427(14A) of that Act.

Venture Capital Act 2002

5  At the end of section 29-1

Add:

                  ; (m)  decisions under subsection 118-432(2) of the Income Tax Assessment Act 1997 refusing to make a finding about an activity.

6  Application of amendments

            The amendments made by this Schedule apply in relation to investments made on or after 1 July 2018.