INCOME TAX ASSESSMENT ACT 1997 - SECT 210.160 The significance of a venture capital credit

INCOME TAX ASSESSMENT ACT 1997 - SECT 210.160

  (1)   The venture capital credit on a distribution is only significant in the hands of a relevant venture capital investor (basically a superannuation fund or other entity that deals with superannuation).

  (2)   That investor receives a tax offset. In most cases, this will be equal to the venture capital credit.

  (3)   Under section   124ZM of the Income Tax Assessment Act 1936 , that part of the distribution that is franked with a venture capital credit is also treated as exempt income in the hands of the entity.