The Australian Government has announced a review into the tax treatment of venture capital, with the terms of reference for the review released on 7 July 2021.

The review is to ensure current venture capital tax concessions support genuine early-stage Australian start-ups. It will be undertaken by Treasury and Industry Innovation and Science Australia (IISA) and will cover the Early Stage Venture Capital Limited Partnership (ESVCLP), the Venture Capital Limited Partnership (VCLP), and the Australian Fund of Funds (AFOFs) programs.

Under the terms of reference, the review will consider how the concessions operate in practice and whether they are achieving their intended objectives.

It is expected that the final report will be delivered to the Treasurer towards the end of 2021.

Treasury and IISA will undertake stakeholder consultation over the coming months.


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