Tax benefits and support to stimulate Australia's venture capital sector
The Venture Capital Limited Partnership (VCLP) program provides registration that gives tax benefits to fund managers and eligible foreign investors to stimulate venture capital investment in Australia.
Registered VCLPs receive flow-through tax treatment so the partnership itself is not taxed, and eligible foreign investors can be exempt from income tax on their share of partnership profits.
You can apply to register if you are:
- a new venture capital fund
- a limited partnership or an incorporated limited partnership
- established in Australia or a country that has a double tax agreement with Australia
You must have:
- a general partner (often also the fund manager) who is a resident of either Australia or a country that has a double tax agreement with Australia
- at least $10 million in committed capital (although a partnership that doesn't satisfy this requirement may be eligible for conditional registration)
A qualifying partnership agreement must:
- ensure the partnership remains in existence for between 5 and 15 years
- require partners to contribute capital when required
- prohibit adding new partners except as provided for in the agreement
- prohibit increasing committed capital except as provided for in the agreement
- confer on the general partner the right to require partners to contribute their committed capital to the partnership
- include a plan outlining the partnership’s intended investment activities
Additional program requirements (post-registration for investments):
- a VCLP must be a new partnership rather than a restructured existing partnership
- if registered, a VCLP can make venture capital investments in companies or unit trusts with total assets of not more than $250 million
- the investments must meet other criteria and be held for a minimum of 12 months
Applicants must apply to Innovation and Science Australia for registration under the Venture Capital Act 2002.
The delegate has 60 days after receiving a complete registration application to decide (and may extend for a further 60 days).
Get a personalised eligibility check — your match score, which criteria you meet, and what to watch out for.
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Last updated: 12 February 2026