Industry Innovation and Science Australia can register limited partnerships as venture capital limited partnerships, early stage venture capital limited partnerships or Australian venture capital funds of funds.

Registration is one of the requirements before investments of venture capital through a limited partnership can attract the operation of:

•   the capital gains tax exemption relating to venture capital under Subdivision   118 - F of the Income Tax Assessment Act 1997 (and the related provisions about similar income gains and losses); and

•   the income tax exemption under section   51 - 52 of the Income Tax Assessment Act 1997 (if the partnership is an early stage venture capital limited partnership); and

•   the "flow - through" treatment, under Division   5 of Part   III of the Income Tax Assessment Act 1936 , of the income of limited partnerships.

Broadly speaking, Industry Innovation and Science Australia will register a limited partnership under Division   13 if an application meets the requirements of Division   11, unless Industry Innovation and Science Australia is satisfied that the partnership does not meet the applicable registration requirements of Division   9.

Conditional registration is an option if an application does not meet the requirements of Division   11.

  Note:   Conditional registration becomes important if full registration is achieved. Registration is then backdated at least to the time of conditional registration.

Industry Innovation and Science Australia can revoke a registration under Division   17. Broadly speaking, the grounds for revocation are:

•   failure to meet the applicable registration requirements of Division   9; and

•   failure to provide information as required under Division   15.