Tax Laws Amendment (Tax Incentives for Innovation) Bill 2016

Type
Government
Portfolio
Treasury
Originating house
House of Representatives
Status
Act
Parliament no
44

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Summary

Amends the: Income Tax Assessment Act 1997, Income Tax Assessment Act 1936 and Taxation Administration Act 1953 to: create an early stage investor regime that provides tax incentives for qualifying investors through a non-refundable tax offset and capital gains tax exemption on innovation related investments; require early stage innovation companies to report on specific innovation related investments; and provide a mechanism for Innovation Australia to provide guidance about whether particular investment activities are ineligible activities; Income Tax Assessment Act 1997 to: provide non-refundable carry-forward tax offsets for limited partners in early stage venture capital limited partnerships (ESVCLP); provide for a capital gains tax exemption for fixed and unit trust beneficiaries of partners in ESVCLPs; and exclude small entities from eligible venture capital investment auditor requirements; Venture Capital Act 2002 to increase the maximum fund size for ESVCLPs to $200 million; Income Tax Assessment Act 1997 and Venture Capital Act 2002 to: remove the requirement that an ESVCLP divest an investment in an entity once the value of the entity’s assets exceeds $250 million; provide that an entity can invest in another entity and remain an eligible venture capital investment; and enable foreign venture capital funds of funds to hold more than 30 per cent of the committee capital of an ESVCLP and extend their access to capital gains tax and other income tax concessions in relation to eligible venture capital investments; and Income Tax Assessment Act 1936 and Taxation Administration Act 1953 to enable a managed investment trust to disregard its investment in, and through, an ESVCLP or venture capital limited partnership when determining if it is a trading trust.

Progress

House of Representatives
Introduced and read a first time 16 Mar 2016
Second reading moved 16 Mar 2016
Lapsed at prorogation 15 Apr 2016
Restored to Notice Paper 02 May 2016
Second reading debate
  • : Bill resumed at point of interruption
02 May 2016
Second reading agreed to 02 May 2016
Third reading agreed to 02 May 2016
Senate
Introduced and read a first time 03 May 2016
Second reading moved 03 May 2016
Second reading debate 03 May 2016
Second reading debate 04 May 2016
Second reading agreed to 04 May 2016
Committee of the Whole debate 04 May 2016
Third reading agreed to 04 May 2016
Finally passed both Houses 04 May 2016
Assent
  • Act no: 54
  • Year: 2016
05 May 2016

Documents and transcripts

Text of bill

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Explanatory memoranda

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Proposed amendments

Senate

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Schedules of amendments

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Bills digest

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Notes

Helpful information

Text of bill

  • First reading: Text of the bill as introduced into the Parliament
  • Third reading: Prepared if the bill is amended by the house in which it was introduced. This version of the bill is then considered by the second house.
  • As passed by both houses: Final text of bill agreed to by both the House of Representatives and the Senate which is presented to the Governor-General for assent.

Explanatory memoranda

  • Explanatory memorandum: Accompanies and provides an explanation of the content of the introduced version (first reading) of the bill.
  • Supplementary explanatory memorandum: Accompanies and explains amendments proposed by the government to the bill.
  • Revised explanatory memorandum: Accompanies and explains the amended version (third reading) of the bill. It supersedes the explanatory memorandum.

Proposed amendments

Circulated by members and senators when they propose to make changes to the bill. For details about the outcome of proposed amendments please refer to either the Votes and Proceedings (House of Representatives) or the Journals (Senate).

Schedules of amendments

Schedules of amendments list amendments agreed to by the second house are communicated to the first house for consideration. Subsequent action by either house may also be included in a schedule.