Tax incentives to encourage investment in a portfolio of registered venture capital partnerships
Registration of a new Australian Venture Capital Fund of Funds (AFOF) partnership to obtain tax incentives and other benefits for fund managers and investors that invest in a portfolio of registered ESVCLPs and VCLPs.
The program facilitates pooled capital, diversification and flow-through tax treatment for investors.
You can apply to register if:
- you are a limited partnership or incorporated limited partnership established in Australia
- each general partner is an Australian resident
The AFOF must be a new partnership (you can't establish an AFOF by restructuring an existing partnership).
The partnership agreement must:
- require the partnership to remain in existence for between 5 and 20 years
- require partners to contribute their capital as and when required under the agreement
- prohibit the addition of new partners except as provided for in the agreement
- prohibit increases in 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 its intended investment activities
There is no minimum capital requirement for full registration, but the general partner must advise that the fund has sufficient capital to begin its investment program.
Applications and ongoing registration/reporting are under the Venture Capital Act 2002 and relevant Income Tax Assessment Acts.
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Last updated: 12 February 2026